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ANNUAL REPORT
DECEMBER 31, 1995
[LOGO]
The investments you want from the people you trust.
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TABLE OF CONTENTS
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<S> <C>
Letter from the President....................................................................................... 2
Performance Review:
Stock and Bond Market Overview.............................................................................. 4
Atlas U.S. Treasury Money Fund.............................................................................. 5
Atlas Municipal Money Funds................................................................................. 5
Atlas Insured Intermediate Municipal Funds.................................................................. 6
Atlas U.S. Government Intermediate Fund..................................................................... 7
Atlas Municipal Bond Funds.................................................................................. 8
Atlas U.S. Government and Mortgage Securities Fund.......................................................... 9
Atlas Balanced Fund......................................................................................... 10
Atlas Growth and Income Fund................................................................................ 11
Atlas Strategic Growth Fund................................................................................. 12
Statements of Investments in Securities and Net Assets.......................................................... 14
Statements of Assets and Liabilities............................................................................ 28
Statements of Operations........................................................................................ 30
Statements of Changes in Net Assets............................................................................. 32
Financial Highlights............................................................................................ 36
Notes to Financial Statements................................................................................... 42
Independent Auditors' Report.................................................................................... 50
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[PASTE UP LOGO]
FROM THE OFFICE OF MARION O. SANDLER
President and Chief Executive Officer
Dear Valued Shareholder,
I am pleased to report that 1995 was a very rewarding time for
Atlas shareholders. The stock and bond markets both enjoyed banner
years and all Atlas stock funds registered double digit returns, led
by the Atlas Growth and Income Fund's net asset value total return
of 33%. Atlas Bond Funds also posted significant gains, headed by
the Atlas U.S. Government and Mortgage Securities Fund's net asset
value total return of over 15%. Detailed information on the
performance of each Atlas Fund begins on page five.
The extraordinary gains in 1995 helped overcome the markets'
lackluster performances of 1994.
Patience Rewarded: 1995 vs. 1994.
Last year, reporting to shareholders on the disappointing
returns of 1994, we counseled on the wisdom of adhering to your
long-term investment program. "Successful, experienced investors,"
we stated, "have learned to live with short-term downturns because
they know that, over the long haul, bonds and stocks have
historically delivered superior financial results."
It is gratifying to see our investment philosophy confirmed by
the markets just one year later. Atlas shareholders who patiently
stayed on their investment path in 1995 were rewarded with high
returns. Investors who responded to the downswing of 1994 by selling
their investments turned temporary setbacks into permanent losses
and missed the opportunities of one of the most positive stock and
bond investment years in recent history.
The Investments You Want From The People You Trust.
As a sister company of World Savings and a member of the $35
billion-strong Golden West Financial Corporation, Atlas is dedicated
to giving you the quality products, personal service and caring
professional advice you've come to expect from World. In 1995, in
keeping with this commitment, Atlas introduced a valuable, free
personalized investment planning service, as well as two programs
that allow you to invest in Atlas Funds without paying an initial
sales charge.
Atlas Asset Allocation -- A Key To Financial
Success.
In June of 1995, we launched Atlas Asset
Allocation, a free personalized investment
planning service. Asset Allocation -- the
judicious diversification of assets among
stocks, bonds, and cash instruments -- is a
time-proven investment strategy that can help
you achieve financial goals, regardless of
market conditions. Many firms charge hundreds
of dollars to provide this kind of service, but
with Atlas this valuable program is free. [PUSH PIN LOGO AND TEXT]
2
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Sales Charge Waivers.
In 1995, Atlas introduced a program waiving the initial sales
charge when you redeem shares from any stock or bond mutual fund and
use that money within 30 days to purchase Atlas "Class A" shares.
Atlas will also waive the initial sales charge when you open, or add
to, an Individual Retirement Account (IRA). These two fee waivers
provide Atlas shareholders the opportunity to consolidate
investments without a sales charge.
Thank You For Your Continuing Confidence In Atlas.
As a result of increased shareholder investments and strong
market gains in 1995, the total net assets of Atlas Funds reached a
record level of $777 million at yearend. We thank you for your trust
in Atlas and look forward to serving you now and in the future.
Sincerely,
[MARION O. SANDLER SIGNATURE]
(Mrs.) Marion O. Sandler
President and Chief Executive Officer
3
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STOCK AND BOND MARKET OVERVIEW
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STOCK MARKET
In 1995, stocks enjoyed some of their strongest gains in years. Low
interest rates, low inflation, slow economic growth and good corporate profits
provided an ideal economic environment and the Dow Jones Industrial Average and
S&P 500 indices responded by rising to record highs. During the year, the Dow
Jones Average crossed both the 4000 and 5000 levels, closing the year over 5100.
While Atlas' stock fund managers do not expect the market to repeat the
exciting advances of last year, they agree with most experts that 1996 could
bring modest gains for investors if, as expected, the economy grows at a slower
pace, interest rates stay low, inflation remains under control and corporate
earnings continue to grow. However, this outlook is clouded by the continuing
budget battle between Congress and the President and the uncertainties of a
Presidential election year. So, as always, the prudent investor should be
prepared for both ups and downs in the market. Nonetheless, fund managers are
cautiously optimistic that there may be opportunities for modest gains in 1996,
in line with average annual long-term stock market returns of about 10%.
BOND MARKET
In 1995, the bond market experienced one of its strongest rallies in recent
memory, easing much of the disappointment generated in 1994. Although short-term
rates ended the year where they began, intermediate and long-term rates declined
significantly during 1995, raising bond prices dramatically. The 30-year
Treasury bond's yield fell nearly two full percentage points, from a high of
7.93% on January 24th, to 5.95% on December 29th. However, price appreciation
more than offset the lower yield, and the 30-year Treasury bond enjoyed its best
total return in the last ten years. Municipal bonds also produced their best
returns since 1986.
By yearend, consumer activity appeared weak and corporate downsizing and
earnings disappointments began making the news. Many bond market experts believe
the Fed will continue to lower interest rates in 1996 in order to stimulate the
economy. Though it is unlikely that the bond markets will repeat their excellent
1995 performance, most experts expect 1996 to be a more typical year, with total
returns in the 6% - 8% range.
4
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ATLAS U.S. TREASURY MONEY FUND
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The Atlas U.S. Treasury Money Fund continued to provide its shareholders
with maximum credit safety, attractive tax advantaged yields, money market
stability, and complete liquidity. Atlas U.S. Treasury Money Fund (Class A
shares) generated a 5.13% total return in 1995, while investing solely in
short-term U.S. Treasury obligations, generally considered to be the safest
investments in the world because of their "full faith and credit" backing by the
U.S. Government. In addition to safety, stability, and complete liquidity, the
Fund has also provided its shareholders with income that is exempt from state
income tax in those states where personal income is taxed.
ATLAS MUNICIPAL MONEY FUNDS
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The Atlas National Municipal Money Fund and the Atlas California Municipal
Money Fund remain dedicated to providing attractive tax-free yields with money
market stability and complete liquidity while investing in only the highest
quality short-term securities available. The National Municipal Money Fund
provided its shareholders with a 3.26% total return in 1995 and the Atlas
California Municipal Money Fund posted a 3.22% total return for the same period.
Two events in 1995 posed unique challenges to municipal money fund
managers, especially those managing California tax-exempt money market funds.
The Orange County financial crisis was a major pre-occupation throughout the
first half of 1995. Neither the Atlas California nor National Municipal Money
Fund owned any direct obligations of Orange County and, therefore was EVER
threatened by the crisis.
The second major challenge of 1995 was the announcement by major Japanese
banks of massive unrealized losses, leading to downgrades of their long-term
debt ratings. Japanese banks had been one of the largest providers of letter of
credit backing for variable rate demand notes ("VRDNs"), a primary short-term
investment vehicle used by municipal money market funds. Without financial
stability, a bank's backing becomes nearly meaningless. In July of 1995, Atlas'
Municipal Money Funds' manager began reducing both Funds' exposure to VRDNs with
Japanese bank letters of credit. By the end of August, before the issue began to
get widespread national exposure, the Funds' manager had reduced portfolio
exposure to the problem, from nearly 24% of the Atlas California Municipal Money
Fund and 12% of the Atlas National Municipal Money Fund, to 0% for both.
Entering 1996, both Funds will continue to utilize only the highest quality
short-term securities available and favor securities that are enhanced by
letters of credit from non-Japanese banks, private insurance or pre-refunding.
If, in the opinion of the Funds' manager, some of the Japanese banks begin to
regain their financial health, the Funds again will consider using letters of
credit backed by those selected banks. The Funds will also maintain slightly
longer weighted-average maturities than their peer groups, in order to increase
yield potential.
5
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ATLAS INSURED INTERMEDIATE MUNICIPAL FUNDS
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The Atlas California Insured Intermediate Municipal Fund (Class A shares)
produced a 1995 net asset value total return of 11.84%, while the Atlas National
Insured Intermediate Municipal Fund (Class A shares) posted a 12.01% total
return for the same period. The year started with the Federal Reserve ("Fed")
continuing to raise short-term interest rates. By midyear, markets had begun to
wonder about, and even anticipate, when and by how much the Fed would lower
rates. The Fed eventually acted, although not very aggressively. Because the
interest rate picture in 1995 was far from clear, both the Atlas California and
National Insured Intermediate Municipal Funds maintained a shorter
weighted-average maturity than most other intermediate municipal debt funds and
emphasized higher coupon, premium securities for price stability.
The Funds' bond portfolios remained 100% invested in insured securities
throughout the year and, unlike many municipal debt funds, neither the
California nor National Insured Intermediate Municipal Funds was ever threatened
by the Orange County financial crisis. Although insurance certainly enhances a
bond's credit protection, the Funds' manager does not rely on insurance alone to
determine the overall quality of a security. The underlying financial strength
of each offering is reviewed prior to purchase, and regularly thereafter, to be
sure of the issuer's capacity to pay without reliance on the insurer. As a
result, the Fund continued emphasizing insured, essential service securities,
such as water and sewer bonds, general obligation and pre-refunded bonds, from
the most financially healthy municipalities.
Looking to the near term, the Funds' manager expects interest rates to be
flat or slightly lower. Because inflation seems to be under control and the
economy continues to recover, the Funds' manager will look for opportunities to
enhance yield by: 1) lengthening the weighted-average maturity somewhat, 2)
acquiring more insured, non-essential service issues, such as housing and health
care, if the issuer can demonstrate sufficient revenue sources to repay the
debt, and 3) purchasing more higher-yielding private activity bonds.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS CALIFORNIA
AND NATIONAL INSURED INTERMEDIATE
MUNICIPAL FUNDS' (CLASS A SHARES)
RETURNS WITH THE LEHMAN BROTHERS
MUNICIPAL 7-YEAR BOND INDEX, A TOTAL
RETURN PERFORMANCE BENCHMARK FOR THE
INTERMEDIATE-TERM, INVESTMENT-GRADE
TAX-EXEMPT BOND MARKET. THE FUNDS'
PERFORMANCE DIFFERS FROM THIS INDEX
BECAUSE THE INDEX DOES NOT INCLUDE SALES
CHARGES OR MANAGEMENT EXPENSES; THE
INDEX CONTAINS LOWER-QUALITY, HIGHER-
YIELDING BBB-RATED ISSUES, IN WHICH THE
FUNDS DO NOT INVEST; AND THE MATURITY
MIX OF SECURITIES IN THE INDEX MAY VARY
WIDELY FROM THOSE IN OUR FUNDS'
PORTFOLIOS.
Source: Lehman Brothers Inc. All returns
reflect reinvestment of dividends. Atlas
returns reflect the maximum 3% sales charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
ATLAS CALIFORNIA INSURED ATLAS NATIONAL INSURED MUNICIPAL
INTERMEDIATE MUNICIPAL FUND INTERMEDIATE MUNICIPAL FUND 7-YEAR BOND INDEX
<S> <C> <C> <C>
May-93 9,700 9,700 10,000
Jun-93 9,937 9,892 10,183
Jul-93 9,894 9,878 10,184
Aug-93 10,135 10,119 10,365
Sep-93 10,309 10,293 10,478
Oct-93 10,316 10,290 10,506
Nov-93 10,235 10,218 10,412
Dec-93 10,409 10,403 10,604
Jan-94 10,534 10,528 10,717
Feb-94 10,251 10,246 10,484
Mar-94 10,017 9,972 10,205
Apr-94 10,042 10,027 10,280
May-94 10,086 10,082 10,331
Jun-94 10,050 10,048 10,313
Jul-94 10,195 10,172 10,458
Aug-94 10,239 10,228 10,513
Sep-94 10,152 10,131 10,413
Oct-94 10,023 10,013 10,308
Nov-94 9,895 9,875 10,157
Dec-94 9,982 9,982 10,312
Jan-95 10,131 10,140 10,504
Feb-95 10,343 10,363 10,741
Mar-95 10,471 10,460 10,852
Apr-95 10,526 10,506 10,881
May-95 10,728 10,720 11,170
Jun-95 10,742 10,746 11,160
Jul-95 10,829 10,846 11,302
Aug-95 10,916 10,914 11,435
Sep-95 10,951 10,929 11,479
Oct-95 11,018 10,998 11,578
Nov-95 11,107 11,121 11,706
Dec-95 11,164 11,180 11,768
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
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1-YEAR 5-YEAR SINCE INCEPTION
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<S> <C> <C> <C>
ATLAS CALIFORNIA INSURED INTERMEDIATE MUNICIPAL FUND
Class A Shares (6/1/93 INCEPTION)
Not adjusted for sales charge 11.84% N/A 5.59%
Adjusted for maximum 3% sales charge 8.48% N/A 4.35%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 11.26% N/A 6.63%
Adjusted for maximum 3% contingent deferred sales
charge 8.26% N/A 4.69%
ATLAS NATIONAL INSURED INTERMEDIATE MUNICIPAL FUND
Class A Shares (6/1/93 INCEPTION)
Not adjusted for sales charge 12.01% N/A 5.65%
Adjusted for maximum 3% sales charge 8.65% N/A 4.41%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 11.43% N/A 6.84%
Adjusted for maximum 3% contingent deferred sales
charge 8.43% N/A 4.90%
Total returns assume investment of all dividends. Share price and total returns vary, and you may have a gain
or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
6
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ATLAS U.S. GOVERNMENT INTERMEDIATE FUND
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(FORMERLY KNOWN AS THE ATLAS U.S. TREASURY INTERMEDIATE FUND)
In 1995, the Atlas U.S. Government Intermediate Fund (Class A shares)
produced a net asset value total return of 10.12%. Due to early concerns about
rising interest rates and to reduce volatility, the Fund shortened its
weighted-average maturity entering 1995 and remained shorter than most
comparable funds for the first half of the year. By mid-year, the Fed finally
reversed the rise in short-term interest rates but, because the rate picture was
still unclear and the yield curve had begun to flatten, the Fund's manager chose
to maintain the Fund's relatively short weighted-average maturity for the
remainder of the year.
In November 1995, shareholders approved changes to the Fund's investment
objectives and name. Like its long-term counterpart -- the Atlas U.S. Government
and Mortgage Securities Fund -- the Atlas U.S. Government Intermediate Fund will
now invest primarily in mortgage-backed securities issued by agencies or
instrumentalities of the U.S. Government. It may also continue to invest in
Treasuries, but will generally do so to a significantly lesser degree. The Fund
will limit its weighted-average maturity to no more than ten years, offering
more price stability than its long-term counterpart.
With the possibility that short-term rates will experience greater downward
pressure than intermediate or long-term yields, and because of the Fund's
changed investment objectives, the manager has now lengthened the
weighted-average maturity of the portfolio. The strategy for this Fund entering
1996 will involve managing prepayment risk and maintaining an "interest
neutral," balanced portfolio until a clear interest rate trend emerges and the
Federal budget controversy is resolved.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS U.S.
GOVERNMENT INTERMEDIATE FUND'S (CLASS A
SHARES) RETURNS WITH THE LEHMAN BROTHERS
INTERMEDIATE (1-10 YEAR) TREASURY INDEX,
A TOTAL RETURN PERFORMANCE BENCHMARK FOR
THE INTERMEDIATE-TERM TREASURY
SECURITIES MARKET. THE FUND'S
PERFORMANCE DIFFERS FROM THIS INDEX
BECAUSE THE INDEX DOES NOT INCLUDE SALES
CHARGES OR MANAGEMENT EXPENSES; AND THE
MIX OF MATURITIES IN THE INDEX MAY VARY
WIDELY FROM THOSE IN OUR FUND'S
PORTFOLIO.
Source: Lehman Brothers Inc. All returns
reflect reinvestment of dividends. Atlas
returns also include reinvestment of capital
gains and the maximum 3% sales charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ATLAS U.S. GOVERNMENT LEHMAN BROTHERS INTERMEDIATE
INTERMEDIATE FUND (1-10 YEAR) TREASURY INDEX
<S> <C> <C>
Oct-92 9,700 10,000
Nov-92 9,624 9,957
Dec-92 9,761 10,087
Jan-93 10,008 10,277
Feb-93 10,192 10,430
Mar-93 10,239 10,468
Apr-93 10,335 10,550
May-93 10,288 10,520
Jun-93 10,475 10,674
Jul-93 10,488 10,695
Aug-93 10,689 10,856
Sep-93 10,739 10,901
Oct-93 10,751 10,927
Nov-93 10,657 10,872
Dec-93 10,702 10,917
Jan-94 10,830 11,025
Feb-94 10,623 10,871
Mar-94 10,409 10,713
Apr-94 10,332 10,644
May-94 10,341 10,652
Jun-94 10,360 10,654
Jul-94 10,456 10,793
Aug-94 10,487 10,824
Sep-94 10,429 10,735
Oct-94 10,449 10,738
Nov-94 10,402 10,689
Dec-94 10,433 10,723
Jan-95 10,564 10,897
Feb-95 10,704 11,105
Mar-95 10,758 11,166
Apr-95 10,836 11,294
May-95 11,032 11,613
Jun-95 11,089 11,690
Jul-95 11,126 11,694
Aug-95 11,185 11,788
Sep-95 11,231 11,867
Oct-95 11,314 12,000
Nov-95 11,399 12,146
Dec-95 11,489 12,268
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
<TABLE>
<CAPTION>
1-YEAR 5-YEAR SINCE INCEPTION
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<S> <C> <C> <C>
ATLAS U.S. GOVERNMENT INTERMEDIATE FUND
Class A Shares (10/5/92 INCEPTION)
Not adjusted for sales charge 10.12% N/A 4.56%
Adjusted for maximum 3% sales charge 6.82% N/A 3.58%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 9.54% N/A 6.50%
Adjusted for maximum 3% contingent deferred sales
charge 6.54% N/A 4.59%
Total returns assume investment of all dividends and capital gains. Share price and total returns vary, and you
may have a gain or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
7
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ATLAS MUNICIPAL BOND FUNDS
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The Atlas California and National Municipal Bond Funds (Class A shares)
produced a 1995 net asset value total return of 14.76%. The year started with
the Federal Reserve ("Fed") continuing to raise short-term interest rates. By
midyear, markets had begun to wonder about, and even anticipate, when and by how
much the Fed would lower rates. The Federal Reserve eventually acted, although
not very aggressively. Because the interest rate picture in 1995 was far from
clear, both Atlas Municipal Bond Funds maintained a shorter weighted-average
maturity than most other long-term municipal debt funds and emphasized higher
coupon, premium securities for price stability.
As part of the strategy to provide a conservative, secure portfolio for its
shareholders, the Funds continued emphasizing essential service securities, such
as water and sewer bonds, general obligation and pre-refunded bonds, which
carried less risk of default because they were backed by highly reliable revenue
sources. As a result, the overall credit quality of the portfolios remained
extremely high throughout the year. As of December 31, 81% of the California
Municipal Bond Fund's portfolio and 72% of the National Municipal Bond Fund's
portfolio were rated the equivalent of AAA, and approximately 99% of both
portfolios was rated either AAA or AA. Throughout 1995, the credit quality of
these Funds was consistently among the highest of all competitive municipal debt
funds according to Lipper Analytical Services, Inc. And, unlike many other
long-term municipal debt funds, the Atlas Municipal Bond Funds were never
threatened by the Orange County financial crisis.
Although the interest rate picture is still somewhat unclear, it seems
likely that rates will be flat to down slightly in the near future. Inflation is
seemingly under control and the likelihood of rate increases appears to be
behind us for now. With that in mind and without changing the overall
conservative approach and quality orientation of the Fund, the manager expects
to improve yield by: 1) lengthening the weighted-average maturity, 2)
selectively acquiring more "A" rated issues, especially general obligations and
bonds issued and supported by states with improving economies, and 3) purchasing
more higher-yielding private activity bonds.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS CALIFORNIA
AND NATIONAL MUNICIPAL BOND FUNDS'
(CLASS A SHARES) RETURNS WITH THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX, A TOTAL
RETURN PERFORMANCE BENCHMARK FOR THE
LONG-TERM, INVESTMENT-GRADE TAX-EXEMPT
BOND MARKET. THE FUNDS' PERFORMANCE
DIFFERS FROM THIS INDEX BECAUSE THE
INDEX DOES NOT INCLUDE SALES CHARGES OR
MANAGEMENT EXPENSES; THE INDEX CONTAINS
LOWER-QUALITY, HIGHER-YIELDING BBB-RATED
ISSUES, IN WHICH THE FUNDS DO NOT
INVEST; AND THE MATURITY MIX OF
SECURITIES IN THE INDEX MAY VARY WIDELY
FROM THOSE IN OUR FUNDS' PORTFOLIOS.
Source: Lehman Brothers Inc. All returns
reflect reinvestment of dividends. Atlas
returns also include reinvestment of capital
gains and reflect the maximum 3% sales
charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ATLAS CALIFORNIA ATLAS NATIONAL LEHMAN BROTHERS
MUNICIPAL BOND FUND MUNICIPAL BOND FUND MUNICIPAL BOND INDEX
<S> <C> <C> <C>
Jan-90 9,700 9,700 10,000
Feb-90 9,818 9,820 10,090
Mar-90 9,814 9,781 10,093
Apr-90 9,624 9,590 10,019
May-90 9,960 9,958 10,238
Jun-90 10,059 10,037 10,328
Jul-90 10,249 10,258 10,481
Aug-90 9,932 9,941 10,328
Sep-90 9,900 9,899 10,334
Oct-90 10,215 10,155 10,353
Nov-90 10,504 10,506 10,561
Dec-90 10,575 10,527 10,607
Jan-91 10,718 10,674 10,749
Feb-91 10,788 10,692 10,843
Mar-91 10,762 10,755 10,847
Apr-91 10,916 10,859 10,992
May-91 11,005 10,960 11,089
Jun-91 10,988 10,931 11,078
Jul-91 11,121 11,078 11,213
Aug-91 11,288 11,225 11,361
Sep-91 11,469 11,463 11,509
Oct-91 11,586 11,559 11,613
Nov-91 11,549 11,532 11,645
Dec-91 11,900 11,918 11,895
Jan-92 11,848 11,900 11,922
Feb-92 11,870 11,934 11,926
Mar-92 11,859 11,890 11,930
Apr-92 11,974 12,006 12,036
May-92 12,133 12,189 12,178
Jun-92 12,351 12,430 12,382
Jul-92 12,812 12,904 12,754
Aug-92 12,546 12,671 12,629
Sep-92 12,691 12,704 12,712
Oct-92 12,264 12,432 12,587
Nov-92 12,686 12,833 12,812
Dec-92 12,835 12,987 12,943
Jan-93 12,977 13,142 13,094
Feb-93 13,624 13,734 13,567
Mar-93 13,418 13,514 13,424
Apr-93 13,561 13,683 13,559
May-93 13,656 13,767 13,636
Jun-93 13,886 14,024 13,863
Jul-93 13,873 14,023 13,881
Aug-93 14,255 14,385 14,170
Sep-93 14,429 14,573 14,331
Oct-93 14,443 14,625 14,359
Nov-93 14,256 14,439 14,232
Dec-93 14,570 14,727 14,533
Jan-94 14,759 14,931 14,698
Feb-94 14,393 14,538 14,318
Mar-94 13,809 13,924 13,735
Apr-94 13,846 13,975 13,852
May-94 13,986 14,128 13,972
Jun-94 13,906 14,021 13,887
Jul-94 14,189 14,292 14,141
Aug-94 14,212 14,315 14,190
Sep-94 13,988 14,075 13,982
Oct-94 13,698 13,861 13,733
Nov-94 13,446 13,631 13,484
Dec-94 13,720 13,930 13,781
Jan-95 14,115 14,270 14,387
Feb-95 14,457 14,627 14,973
Mar-95 14,531 14,713 15,153
Apr-95 14,538 14,719 15,145
May-95 14,992 15,146 15,790
Jun-95 14,975 14,987 15,500
Jul-95 14,911 15,143 15,579
Aug-95 15,068 15,245 15,798
Sep-95 15,143 15,347 15,922
Oct-95 15,357 15,559 16,307
Nov-95 15,600 15,828 16,728
Dec-95 15,746 15,987 16,989
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
<TABLE>
<CAPTION>
1-YEAR 5-YEAR SINCE INCEPTION
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ATLAS CALIFORNIA MUNICIPAL BOND FUND
Class A Shares (1/24/90 INCEPTION)
Not adjusted for sales charge 14.76% 8.28% 8.56%
Adjusted for maximum 3% sales charge 11.32% 7.63% 8.00%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 14.05% N/A 7.98%
Adjusted for maximum 3% contingent deferred sales
charge 11.05% N/A 6.05%
ATLAS NATIONAL MUNICIPAL BOND FUND
Class A Shares (1/26/90 INCEPTION)
Not adjusted for sales charge 14.76% 8.71% 8.78%
Adjusted for maximum 3% sales charge 11.32% 8.05% 8.23%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 14.16% N/A 8.48%
Adjusted for maximum 3% contingent deferred sales
charge 11.16% N/A 6.56%
Total returns assume investment of all dividends and capital gains. Share price and total returns vary, and you
may have a gain or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
8
<PAGE>
ATLAS U.S. GOVERNMENT AND MORTGAGE SECURITIES FUND
- ---------------------------------------------------------------------
The Atlas U.S. Government and Mortgage Securities Fund (Class A shares)
produced a 1995 net asset value total return of 15.50%. Because of the concern
about a continued rise in interest rates at the beginning of 1995, this Fund
maintained a defensive position for the first part of the year, reducing its
volatility by emphasizing higher coupon securities. Later in the year, as the
Federal Reserve reversed the rising rate trend, but failed to provide a clear
signal regarding the degree and direction of future rate changes, the Fund's
manager moved to a neutral strategy of balancing the portfolio among higher- and
lower-yielding securities.
One of the biggest challenges faced by the Fund as the year progressed was
managing prepayment risk in the portfolio. Declining long-term interest rates
led to mortgage refinancings, which caused mortgage-backed securities (MBS) to
be paid off earlier than expected. This situation, if not properly anticipated,
could have forced the Fund to reinvest at lower interest rates, thus reducing
investment yield. Throughout the year the manager vigilantly monitored the
prepayment characteristics of the MBS portfolio, swapping those with abnormally
high prepayment trends for those with lower prepayment characteristics. As a
result, shareholders received one of the highest yields offered by any General
U.S. Government Fund, according to Lipper Analytical Services, Inc. ("Lipper").
With the interest rate outlook still unclear, but flat to slightly lower
rates likely in 1996, the Fund will continue to actively monitor prepayment
exposure. Until the Federal budget controversy is resolved and a significant
trend in interest rates can be identified, the Fund's manager will continue to
maintain a balanced portfolio approach, designed to reduce volatility, while
still providing excellent yield potential.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS U.S.
GOVERNMENT AND MORTGAGE SECURITIES
FUND'S (CLASS A SHARES) RETURNS WITH THE
LEHMAN BROTHERS U.S. MORTGAGE-BACKED
SECURITIES INDEX, A TOTAL RETURN
PERFORMANCE BENCHMARK FOR THE
MORTGAGE-BACKED SECURITIES MARKET. THE
FUND'S PERFORMANCE DIFFERS FROM THIS
INDEX BECAUSE THE INDEX DOES NOT INCLUDE
SALES CHARGES OR MANAGEMENT EXPENSES;
AND THE MIX OF SECURITIES IN THE INDEX
MAY VARY WIDELY FROM THOSE IN OUR FUND'S
PORTFOLIO.
Source: Lehman Brothers Inc. All returns
reflect reinvestment of dividends. Atlas
returns reflect the maximum 3% sales charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ATLAS U.S. GOVERNMENT AND LEHMAN BROTHERS U.S. MORTGAGE-BACKED
MORTGAGE SECURITIES FUND SECURITIES INDEX
<S> <C> <C>
Jan-90 9700 10000
Feb-90 9743 10059
Mar-90 9775 10084
Apr-90 9748 9993
May-90 9982 10303
Jun-90 10114 10466
Jul-90 10300 10848
Aug-90 10260 10535
Sep-90 10355 10822
Oct-90 10450 10742
Nov-90 10630 10967
Dec-90 10790 11151
Jan-91 10951 11321
Feb-91 11025 11416
Mar-91 11098 11494
Apr-91 11182 11599
May-91 11266 11701
Jun-91 11261 11712
Jul-91 11458 11910
Aug-91 11657 12127
Sep-91 11904 12353
Oct-91 12094 12559
Nov-91 12204 12649
Dec-91 12466 12903
Jan-92 12303 12754
Feb-92 12445 12875
Mar-92 12363 12792
Apr-92 12494 12918
May-92 12769 13150
Jun-92 12939 13305
Jul-92 13083 13422
Aug-92 13262 13597
Sep-92 13368 13703
Oct-92 13203 13582
Nov-92 13224 13625
Dec-92 13445 13800
Jan-93 13652 13961
Feb-93 13797 14122
Mar-93 13867 14208
Apr-93 13936 14282
May-93 13992 14364
Jun-93 14177 14473
Jul-93 14257 14531
Aug-93 14376 14599
Sep-93 14365 14612
Oct-93 14435 14655
Nov-93 14330 14625
Dec-93 14451 14744
Jan-94 14638 14890
Feb-94 14442 14785
Mar-94 13969 14401
Apr-94 13857 14294
May-94 13912 14352
Jun-94 13826 14320
Jul-94 14146 14606
Aug-94 14174 14653
Sep-94 13914 14445
Oct-94 13884 14436
Nov-94 13841 14392
Dec-94 13974 14507
Jan-95 14280 14817
Feb-95 14631 15195
Mar-95 14672 15267
Apr-95 14879 15483
May-95 15295 15971
Jun-95 15353 16082
Jul-95 15395 16089
Aug-95 15543 16257
Sep-95 15676 16400
Oct-95 15778 16546
Nov-95 15959 16734
Dec-95 16141 16944
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
<TABLE>
<CAPTION>
1-YEAR 5-YEAR SINCE INCEPTION
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ATLAS U.S. GOVERNMENT AND MORTGAGE SECURITIES FUND
Class A Shares (1/19/90 INCEPTION)
Not adjusted for sales charge 15.50% 8.38% 8.80%
Adjusted for maximum 3% sales charge 12.04% 7.72% 8.25%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 14.93% N/A 10.20%
Adjusted for maximum 3% contingent deferred sales
charge 11.93% N/A 8.29%
Total returns assume investment of all dividends. Share price and total returns vary, and you may have a
gain or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
9
<PAGE>
ATLAS BALANCED FUND
- ---------------------------------------------------------------------
The Atlas Balanced Fund (Class A shares) produced a 1995 net asset value
total return of 26.76%. In keeping with the Fund's goals of high current income
and reasonable capital growth, the Fund continued to maintain a well-diversified
portfolio of common and preferred stocks, convertible securities, government and
corporate bonds, and short-term cash equivalents. To take advantage of the
strong equity market in 1995, the Fund's manager had increased the portfolio's
stock position and convertible securities holdings to over 33% each by yearend,
while reducing corporate bonds and Treasury notes to 25% and cash to just under
7% of the portfolio.
As 1996 unfolds, the Fund expects to maintain its large stock holding in
banks -- nearly half of the common stock segment of the portfolio at yearend
1995. The Fund will also continue to emphasize the stocks of oil and gas
companies and utility companies. These positions will be watched closely by the
Fund's manager and reduced should those companies begin showing earnings
weaknesses. The remainder of the common stock portion of the portfolio will
continue to consist primarily of stocks which are expected to exhibit reliable
earnings and greater price stability. It is the manager's view that the Fund is
well-positioned to react to a market downswing if one should occur in 1996.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS BALANCED
FUND'S (CLASS A SHARES) RETURNS WITH THE
STANDARD & POOR'S COMPOSITE INDEX OF 500
STOCKS, AN UNMANAGED INDEX GENERALLY
CONSIDERED REPRESENTATIVE OF THE EQUITY
MARKET FOR LARGER CAPITALIZATION STOCKS,
AND WITH THE LEHMAN BROTHERS AGGREGATE
BOND INDEX, A BROAD MEASURE OF THE BOND
MARKET. THE FUND'S PERFORMANCE DIFFERS
FROM THESE INDICES BECAUSE THE INDICES
DO NOT INCLUDE SALES CHARGES OR
MANAGEMENT EXPENSES; AND CONTAIN NO
CASH, WHEREAS THE FUND GENERALLY CARRIED
A CASH POSITION DURING 1995. THE MIX OF
STOCKS IN THE S&P 500 INDEX AND THE
COMPOSITION AND MATURITY MIX OF
SECURITIES IN THE BOND INDEX MAY VARY
WIDELY FROM THOSE IN OUR FUND'S
PORTFOLIO.
Source: Standard & Poor's, Inc. and Lehman
Brothers Inc. All returns reflect
reinvestment of dividends. Atlas returns also
include reinvestment of capital gains and the
maximum 3% sales charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
ATLAS BALANCED S&P 500 AGGREGATE BOND
FUND INDEX INDEX
<S> <C> <C> <C>
Sep-93 9,700 10,000 10,000
Oct-93 9,700 10,203 10,037
Nov-93 9,496 10,107 9,952
Dec-93 9,639 10,231 10,005
Jan-94 9,962 10,574 10,140
Feb-94 9,757 10,289 9,964
Mar-94 9,453 9,841 9,718
Apr-94 9,492 9,969 9,640
May-94 9,502 10,132 9,639
Jun-94 9,411 9,881 9,618
Jul-94 9,691 10,208 9,809
Aug-94 10,001 10,624 9,821
Sep-94 9,850 10,368 9,677
Oct-94 9,871 10,605 9,668
Nov-94 9,567 10,216 9,647
Dec-94 9,460 10,365 9,713
Jan-95 9,583 10,635 9,906
Feb-95 9,921 11,047 10,141
Mar-95 10,147 11,374 10,203
Apr-95 10,396 11,705 10,346
May-95 10,748 12,168 10,747
Jun-95 10,908 12,454 10,825
Jul-95 11,274 12,868 10,801
Aug-95 11,410 12,903 10,932
Sep-95 11,629 13,444 11,038
Oct-95 11,534 13,397 11,181
Nov-95 11,967 13,986 11,349
Dec-95 11,991 14,245 11,508
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
<TABLE>
<CAPTION>
1-YEAR 5-YEAR SINCE INCEPTION
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ATLAS BALANCED FUND
Class A Shares (10/1/93 INCEPTION)
Not adjusted for sales charge 26.76% N/A 9.87%
Adjusted for maximum 3% sales charge 22.96% N/A 8.40%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 26.08% N/A 16.86%
Adjusted for maximum 3% contingent deferred sales
charge 23.08% N/A 15.00%
Total returns assume investment of all dividends and capital gains. Share price and total returns vary, and
you may have a gain or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
10
<PAGE>
ATLAS GROWTH AND INCOME FUND
- ---------------------------------------------------------------------
In 1995, the Atlas Growth and Income Fund (Class A shares) produced a net
asset value total return of 33.06%. The Fund's manager favored the stocks of
small and mid-sized companies for the first half of the year and into the third
quarter. Many of these companies were in technology and contributed
significantly to the Fund's overall performance. In anticipation of weaker
earnings and slower economic growth prospects, the manager began to take profits
opportunistically in many of these positions, trading them for larger, more
stable companies in the third and fourth quarters. At year end, the portfolio
was much more defensive. Cash had increased to nearly 18% of the portfolio and
the common stock focus had shifted to companies that could show strong earnings
in a slower growth environment. Many small companies from the computer hardware,
software and telecommunications fields had been replaced by names like General
Electric, Honeywell, Xerox, McDonald's, Johnson & Johnson and Boeing.
For income, the manager continued to utilize convertible securities but,
with the defensive repositioning that occurred in the latter part of the year,
shifted some of the income-producing segment of the portfolio to higher
dividend-paying common stocks, including utilities.
In its pursuit of capital growth, the Fund in 1996 will continue to favor
mid to large capitalization stocks that can perform well in a slow economy. And,
for income, the Fund's manager expects to continue combining convertible
securities with high dividend-paying common stocks. The Fund's defensive
position should provide cushioning against future stock volatility, and, should
a market correction occur, the cash position will enable the Fund to make
opportunistic purchases.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS GROWTH AND
INCOME FUND'S (CLASS A SHARES) RETURNS
WITH THE STANDARD & POOR'S COMPOSITE
INDEX OF 500 STOCKS, AN UNMANAGED INDEX
GENERALLY CONSIDERED REPRESENTATIVE OF
THE EQUITY MARKET FOR LARGER
CAPITALIZATION STOCKS. THE FUND'S
PERFORMANCE DIFFERS FROM THIS INDEX
BECAUSE THE INDEX DOES NOT INCLUDE SALES
CHARGES OR MANAGEMENT EXPENSES; THE
INDEX CONTAINS NO CASH, WHEREAS THE FUND
GENERALLY CARRIED A CASH POSITION DURING
1995; AND THE MIX OF STOCKS IN THE INDEX
MAY VARY WIDELY FROM THOSE IN OUR FUND'S
PORTFOLIO.
Source: Standard & Poor's, Inc. All returns
reflect reinvestment of dividends. Atlas
returns also include the reinvestment of
capital gains and reflect the maximum 3%
sales charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ATLAS GROWTH AND
INCOME FUND S&P 500 INDEX
<S> <C> <C>
Dec-90 9,700 10,000
Jan-91 10,048 10,442
Feb-91 10,724 11,190
Mar-91 11,164 11,456
Apr-91 11,135 11,488
May-91 11,484 11,980
Jun-91 11,167 11,432
Jul-91 11,763 11,967
Aug-91 12,105 12,249
Sep-91 12,083 12,048
Oct-91 12,280 12,209
Nov-91 11,984 11,716
Dec-91 13,400 13,055
Jan-92 13,014 12,812
Feb-92 13,093 12,976
Mar-92 12,896 12,722
Apr-92 13,065 13,092
May-92 13,065 13,163
Jun-92 12,680 12,972
Jul-92 13,070 13,495
Aug-92 12,760 13,222
Sep-92 12,721 13,374
Oct-92 13,093 13,422
Nov-92 13,486 13,875
Dec-92 13,588 14,056
Jan-93 13,639 14,159
Feb-93 13,871 14,350
Mar-93 14,243 14,659
Apr-93 13,908 14,299
May-93 14,121 14,686
Jun-93 14,328 14,734
Jul-93 14,481 14,665
Aug-93 14,950 15,223
Sep-93 14,982 15,111
Oct-93 15,340 15,418
Nov-93 14,634 15,273
Dec-93 15,001 15,460
Jan-94 15,688 15,978
Feb-94 15,247 15,547
Mar-94 14,700 14,871
Apr-94 14,710 15,064
May-94 14,560 15,310
Jun-94 14,038 14,931
Jul-94 14,630 15,426
Aug-94 15,297 16,053
Sep-94 15,114 15,667
Oct-94 15,243 16,025
Nov-94 14,487 15,437
Dec-94 14,814 15,663
Jan-95 14,738 16,070
Feb-95 15,351 16,693
Mar-95 16,036 17,187
Apr-95 16,277 17,688
May-95 16,486 18,386
Jun-95 17,199 18,818
Jul-95 18,234 19,445
Aug-95 18,597 19,498
Sep-95 18,895 20,314
Oct-95 18,784 20,243
Nov-95 19,502 21,134
Dec-95 19,711 21,525
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
<TABLE>
<CAPTION>
1-YEAR 5-YEAR SINCE INCEPTION
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ATLAS GROWTH AND INCOME FUND
Class A Shares (12/5/90 INCEPTION)
Not adjusted for sales charge 33.06% 15.23% 15.17%
Adjusted for maximum 3% sales charge 29.06% 14.53% 14.48%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 32.32% N/A 24.69%
Adjusted for maximum 3% contingent deferred sales
charge 29.32% N/A 22.90%
Total returns assume investment of all dividends and capital gains. Share price and total returns vary, and
you may have a gain or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
11
<PAGE>
ATLAS STRATEGIC GROWTH FUND
- ---------------------------------------------------------------------
The Atlas Strategic Growth Fund (Class A shares) produced a 1995 net asset
value total return of 29.14%. During the year, the Fund's manager adhered to the
Fund's long-term capital appreciation strategy of identifying stocks with
superior growth prospects and reasonable valuations relative to the market. This
strategy was especially challenging in a year when equity valuations rose to
record highs. Significant portfolio shifts in 1995 consisted mainly of
increasing the energy, forest and paper products, and technology sectors and
reducing holdings in utilities and consumer cyclicals, primarily autos and
retailers with deteriorating earnings outlooks.
Looking ahead, the Fund's manager, in anticipation of a slow growth
environment, will continue to search for stocks that have superior growth
prospects, but are not over-priced, with special emphasis on technology, basic
materials and financial stocks. The manager believes that certain technology
stocks still offer attractive valuations and superior earnings prospects because
of strong exports, new product introductions, and a broad demand for
productivity improvements. Companies in the basic materials sector offer
excellent valuations, low cost operations, improved balance sheets, and
reasonable product demand -- good characteristics for success in a slow growth
economy. And the financial sector continues to offer above-average earnings
growth with good valuations.
Although cautiously optimistic about 1996 in general, the manager had
increased the Fund's cash position to nearly 24% at the end of 1995. This
defensive positioning should prepare the Fund for any near-term volatility and
also allow the Fund to take advantage of buying opportunities if the market
experiences a downswing.
GROWTH OF A HYPOTHETICAL $10,000
INVESTMENT
THIS CHART COMPARES THE ATLAS STRATEGIC
GROWTH FUND'S (CLASS A SHARES) RETURNS
WITH THE STANDARD & POOR'S COMPOSITE
INDEX OF 500 STOCKS, AN UNMANAGED INDEX
GENERALLY CONSIDERED REPRESENTATIVE OF
THE EQUITY MARKET FOR LARGER
CAPITALIZATION STOCKS. THE FUND'S
PERFORMANCE DIFFERS FROM THIS INDEX
BECAUSE THE INDEX DOES NOT INCLUDE SALES
CHARGES OR MANAGEMENT EXPENSES; THE
INDEX CONTAINS NO CASH, WHEREAS THE FUND
GENERALLY CARRIED A CASH POSITION DURING
1995; AND THE MIX OF STOCKS IN THE INDEX
MAY VARY WIDELY FROM THOSE IN OUR FUND'S
PORTFOLIO.
Source: Standard & Poor's, Inc. All returns
reflect reinvestment of dividends. Atlas
returns also include reinvestment of capital
gains and the maximum 3% sales charge.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ATLAS STRATEGIC
GROWTH FUND S&P 500 INDEX
SEP-93 9,700 10,000
<S> <C> <C>
Oct-93 9,787 10,203
Nov-93 9,768 10,107
Dec-93 9,888 10,231
Jan-94 10,181 10,574
Feb-94 9,956 10,289
Mar-94 9,576 9,841
Apr-94 9,703 9,969
May-94 9,917 10,132
Jun-94 9,673 9,881
Jul-94 9,810 10,208
Aug-94 10,220 10,624
Sep-94 9,907 10,368
Oct-94 10,073 10,605
Nov-94 9,829 10,216
Dec-94 9,860 10,365
Jan-95 9,979 10,635
Feb-95 10,393 11,047
Mar-95 10,600 11,374
Apr-95 10,866 11,705
May-95 11,201 12,168
Jun-95 11,537 12,454
Jul-95 11,951 12,868
Aug-95 11,941 12,903
Sep-95 12,217 13,444
Oct-95 12,385 13,397
Nov-95 12,809 13,986
Dec-95 12,734 14,245
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/95
<TABLE>
<CAPTION>
1-YEAR 5-YEAR SINCE INCEPTION
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ATLAS STRATEGIC GROWTH FUND
Class A Shares (10/1/93 INCEPTION)
Not adjusted for sales charge 29.14% N/A 12.85%
Adjusted for maximum 3% sales charge 25.27% N/A 11.33%
Class B Shares (7/1/94 INCEPTION)
Not adjusted for maximum 3% contingent deferred
sales charge 28.58% N/A 19.42%
Adjusted for maximum 3% contingent deferred sales
charge 25.58% N/A 17.59%
Total returns assume investment of all dividends and capital gains. Share price and total returns vary, and
you may have a gain or loss when you sell. Past performance is no guarantee of future results.
</TABLE>
12
<PAGE>
(This page has been left blank intentionally.)
13
<PAGE>
Statements of Investments in Securities and Net Assets DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Treasury Money Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
UNITED STATES TREASURY BILLS - 99.66%
4.895% - 4.905% due 03/14/96 - 04/04/96................... $ 5,660,000 $ 5,586,502
5.05% - 5.25% due 03/07/96 - 03/14/96..................... 8,683,000 8,565,535
5.255% - 5.41% due 01/25/96 - 03/07/96.................... 37,637,000 37,171,362
------------
Total United States Treasury Bills (cost: $51,323,399) 51,323,399
------------
TOTAL SECURITIES (COST: $51,323,399) - 99.66% 51,323,399
OTHER ASSETS AND LIABILITIES, NET - 0.34% 174,311
------------
NET ASSETS - 100.00% $ 51,497,710
------------
------------
<CAPTION>
Atlas California Municipal Money Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 21.30%
Long Beach, Harbor Department Revenue, Series A, AMT,
3.65% due 02/09/96....................................... $ 1,400,000 $ 1,400,000
Los Angeles, Metropolitan Transportation Authority, 3.40%
due 02/09/96............................................. 1,000,000 1,000,000
Metropolitan Water District of Southern California, 3.40%
due 02/09/96............................................. 700,000 700,000
Puerto Rico, Government Development Bank, 3.50% due
02/09/96................................................. 1,000,000 1,000,000
Sacramento, Municipal Utility District, Series H, 3.55%
due 01/12/96............................................. 1,600,000 1,600,000
State Pollution Control Financing Authority Revenue
Refunding, Pacific Gas & Electric,
Series 88C, 3.70% due 01/11/96........................... 500,000 500,000
Series E, 3.20% due 01/18/96............................. 1,200,000 1,200,000
Series E, 3.20% due 01/24/96............................. 1,000,000 1,000,000
------------
Total Tax-Exempt Commercial Paper (cost: $8,400,000) 8,400,000
------------
FIXED RATE BONDS AND NOTES - 27.18%
Brea, Redevelopment Agency, Sub-Tax Allocation
Redevelopment Project, Area AB, 3.80% due 09/15/96....... 700,000 739,579
East Bay, Municipal Utility Water System Revenue
Refunding, 4.25% due 03/01/96............................ 1,400,000 1,446,302
Los Angeles County, Metropolitan Transportation Authority,
Revenue Anticipation Notes, Series A, 4.24% due
04/25/96................................................. 1,500,000 1,503,435
Los Angeles County, Tax and Revenue Anticipation Notes,
3.80% due 07/01/96....................................... 1,500,000 1,505,025
Sacramento, Municipal Utilities District Electric Revenue,
Series L, 3.70% due 11/01/96............................. 1,000,000 1,047,755
Series Q, FGIC Insured, 3.60% due 05/01/96............... 1,000,000 1,032,470
San Bernardino County, Tax and Revenue Anticipation Notes,
3.95% due 07/05/96....................................... 1,000,000 1,002,688
<CAPTION>
Atlas California Municipal Money Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
South Poway, Community Facilities District 1, Special Tax,
Pomerado Business Park Project, Series A, 3.69% due
03/02/96................................................. $ 100,000 $ 103,971
State Educational Facilities Authority Revenue,
California Institute of Technology Project, 4.25% due
01/03/96................................................. 300,000 306,000
Santa Clara University Project, 4.30% due 02/01/96....... 1,265,000 1,295,192
State Health Facilities Funding Authority Revenue, Good
Samaritan Health System, Series A, 3.50% due 02/01/96.... 735,000 735,000
------------
Total Fixed Rate Bonds and Notes (cost: $10,717,417) 10,717,417
------------
VARIABLE RATE DEMAND NOTES* - 50.72%
Alameda County, Multi-Family Mortgage Revenue Refunding,
Quail-A, 5% due 05/15/15................................. 200,000 200,000
Anaheim, Housing Authority, Multi-Family Housing Revenue,
Bel Age Project, Series A, AMT, 5.10% due 07/15/20....... 900,000 900,000
Foothill/Eastern Transportation Corridor Agency, Toll Road
Revenue, Series C, 4.80% due 01/02/35.................... 600,000 600,000
Kern County, COP, Kern Public Facilities Project,
Series A, 4.85% due 08/01/06............................. 100,000 100,000
Series D, 4.85% due 08/01/06............................. 800,000 800,000
Los Angeles, Community Redevelopment Agency, COP, Baldwin
Hills Public Park, 4.85% due 12/01/14.................... 600,000 600,000
Los Angeles County, Community Development Commission, COP,
Willowbrook Project, 4.85% due 11/01/15.................. 500,000 500,000
Los Angeles County, Industrial Development Authority,
Industrial Development Revenue Refunding, Kransco
Project, 5.25% due 08/01/08.............................. 375,000 375,000
Moorpark, Multi-Family Housing Revenue Refunding, Le Club
Apartments Project, Series A, 4.80% due 11/01/15......... 1,100,000 1,100,000
Palm Springs, Community Redevelopment Agency, COP,
Headquarters Hot-6, XL194, 4.80% due 12/01/14............ 1,000,000 1,000,000
Riverside, Multi-Family Revenue Refunding, Sierra
Apartments, Series A, 5% due 06/01/05.................... 500,000 500,000
Sacramento County, Certificate of Participation,
Administration Center and Court House Project, 4.75% due
06/01/20................................................. 1,200,000 1,200,000
San Diego, Housing Authority Revenue, Market Street Square
Project, Series G, 5.25% due 11/01/25.................... 1,300,000 1,300,000
San Diego County, Multi-Family Housing Revenue, Country
Hills, Series A, 5% due 08/15/13......................... 180,000 180,000
San Jose, Multi-Family Housing, Foxchase Drive Apartments
Project, Series 85-B, 5% due 11/01/07.................... 1,000,000 1,000,000
</TABLE>
14 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Money Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
San Jose, Multi-Family Mortgage Revenue, Somerset Park,
Series A, AMT, 5% due 11/01/17........................... $ 1,600,000 $ 1,600,000
State Health Facilities Financing Authority Revenue,
Catholic Healthcare West, Series A, MBIA Insured, 4.85%
due 07/01/09............................................. 1,000,000 1,000,000
Childrens Hospital, MBIA Insured, 4.75% due 11/01/21..... 100,000 100,000
Enloe Memorial Hospital, Series A, 5.10% due 01/01/16.... 200,000 200,000
Pool Program, Series 1990A, 4.95% due 09/01/20........... 700,000 700,000
State Housing Financing Agency Revenue Refunding,
Multi-Family, Hidden Hills, Series C, 5% due 07/15/13.... 800,000 800,000
State Pollution Control Financing Authority, Industrial
Development Revenue, Southdown, Inc., 4.20% due
4/15/98.................................................. 100,000 100,000
State Pollution Control Financing Authority, Pollution
Control Revenue, Southdown, Inc., Series B, 4.20% due
09/15/98................................................. 600,000 600,000
State Pollution Control Financing Authority, Resource
Recovery Revenue,
Burney Forest Products Project, Series A, AMT, 5.95% due
09/01/20................................................. 100,000 100,000
Ultrapower Rocklin, Series A, AMT, 6.05% due 06/01/17.... 300,000 300,000
Statewide Communities Development Corp. Revenue,
Industrial Development Packaging,
Johanson Project, Series E, 4.90% due 11/01/20........... 700,000 700,000
Setton Project, AMT, 5.05% due 10/01/10.................. 1,000,000 1,000,000
Staub Project, Series A, AMT, 4.90% due 08/01/02......... 800,000 800,000
Tri-Valley Industrial Development, Series F, AMT, 4.90%
due 12/01/10............................................. 700,000 700,000
Turlock, Irrigation District Revenue, Series A, 4.85% due
01/01/14................................................. 950,000 950,000
------------
Total Variable Rate Demand Notes (cost: $20,005,000) 20,005,000
------------
TOTAL SECURITIES (COST: $39,122,417) - 99.20% 39,122,417
OTHER ASSETS AND LIABILITIES, NET - .80% 316,874
------------
NET ASSETS - 100.00% $ 39,439,291
------------
------------
<CAPTION>
Atlas National Municipal Money Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER - 19.72%
Lower Colorado River Authority, Series D, 3.70% due
02/05/96................................................. $ 300,000 $ 300,000
Municipal Electric Authority, Georgia, Project One, Series
E, 3.95% due 01/03/96.................................... 200,000 200,000
<CAPTION>
Atlas National Municipal Money Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Texas, A & M University, Permanent University Fund, Sub
Lien Notes, Series B, 3.40% due 01/24/96................. $ 250,000 $ 250,000
West Orange, Memorial Hospital, 1991 A2, 3.65% due
01/23/96................................................. 500,000 500,000
West Virginia, Public Energy Authority, Energy Revenue,
Morgantown Association Project, AMT, 3.65% due
02/09/96................................................. 300,000 300,000
------------
Total Tax-Exempt Commercial Paper (cost: $1,550,000) 1,550,000
------------
FIXED RATE BONDS AND NOTES - 53.38%
Chicago, Illinois, O'Hare International Airport Revenue,
General Airport Second Lien-B, 3.80% due 01/01/96........ 200,000 200,000
Chicago, Illinois, Park District, 4.15% due 01/01/96...... 400,000 400,084
Cochise County, Arizona, Pollution Control Corp., Solid
Waste Disposal Revenue, Arizona Electric Power, AMT,
3.90% due 03/01/96....................................... 300,000 300,000
Colorado, Health Facilities Authority, Health Care System
Revenue, Sisters of Charity, Sunny Acre, 3.75% due
05/01/96................................................. 150,000 150,000
Hawaii, Department of Budget and Finance, Special Purpose
Mortgage Revenue, Kaiser Permanente Medical Care 84-B
Regional, 3.75% due 03/01/96............................. 300,000 300,000
Hillsborough County, Florida, Capital Improvement Program
Revenue, Subseries 2 Water & Waste, 3.80% due 02/01/96... 175,000 179,451
Jackson County, Mississippi Refunding, Water System, 3.60%
due 02/01/96............................................. 100,000 100,000
Kansas City, Missouri, School District Building Corp.,
Insured Leasehold Revenue, Series A, Capital Improvement
Project, FGIC Insured, 3.93% due 02/01/96................ 100,000 100,086
Mecklenburg County, North Carolina, Public Improvement,
3.70% due 06/01/96....................................... 350,000 362,285
Milwaukee, Wisconsin, Promissory Notes,
Series A5, 3.70% due 02/15/96............................ 120,000 120,150
Series C5, 3.88% due 11/15/96............................ 265,000 267,507
Multnomah County, Oregon School District 1J, Portland Tax
Anticipation Notes, 4.70% due 05/30/96................... 200,000 200,644
Pennsylvania, Turnpike Commission Turnpike Revenue, Series
A, 3.75% due 12/01/96.................................... 430,000 454,119
South Carolina, Public Service Authority, Electric Revenue
& Electric Systems Expansion Revenue, Refunding, Series
A, 3.80% due 01/01/96.................................... 100,000 102,000
South Denver, Colorado, Metropolitan District, 3.70% due
06/01/96................................................. 530,000 530,000
Southern Minnesota, Municipal Power Agency, Power Supply
System Revenue, Series C, 3.70% due 01/01/96............. 225,000 229,540
</TABLE>
15
<PAGE>
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Money Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Utah County, Utah, Environmental Improvement Revenue, USX
Corp. Project, 3.70% due 05/01/96........................ $ 200,000 $ 200,000
------------
Total Fixed Rate Bonds and Notes (cost: $4,195,866) 4,195,866
------------
VARIABLE RATE DEMAND NOTES* - 30.41%
Biddeford, Maine, Resource Recovery Revenue, Maine Energy
Recovery Co. Project, 3.90% due 07/01/07................. 200,000 200,000
Butte-Silver Bow, Montana Pollution Control Revenue
Refunding, Rhone-Poulenc, Inc. Project, 5.10% due
09/01/01................................................. 200,000 200,000
California, Pollution Control Funding, Authority Resource
Recovery Revenue, Burney Forest Products Project, Series
A, AMT, 5.95% due 09/01/20............................... 100,000 100,000
Campbell County, Virginia, Industrial Development
Authority Revenue, Exempt Facility, Hadson Power 12,
Series A, AMT, 6.15% due 04/01/15........................ 100,000 100,000
Delaware Economic Development Authority Revenue, Gas
Facilities Refunding, Delmarva Power & Light Co., Series
C, 5.20% due 10/01/28.................................... 100,000 100,000
Director of Nevada Department of Commerce, Industrial
Development Revenue, CIMCO, Inc. Project, Series A, AMT,
5.45% due 09/15/08....................................... 390,000 390,000
Dubuque, Iowa, Industrial Development Revenue, Swiss
Valley Farms Co. Project, AMT, 5.60% due 12/01/01........ 100,000 100,000
Illinois Development Finance Authority Revenue,
Residential Rental, F.C. Harris Pavilion Project, AMT,
5.15% due 04/01/24....................................... 200,000 200,000
Marion County, West Virginia, County Commission, Solid
Waste Disposal Facility Revenue, Granttown Project,
Series A, AMT, 5.15% due 10/01/17........................ 100,000 100,000
Naperville, Illinois, Industrial Development Revenue,
Service Merchandise Co. Project, 4.30% due 11/30/24...... 100,000 100,000
North Carolina, Educational Facilities Finance Agency
Revenue, Bowman Grey School Medical Project, 5% due
09/01/20................................................. 100,000 100,000
Prairie Du Chien, Wisconsin, Industrial Development
Revenue, Oxford International Ltd. Project, 5.40% due
06/01/02................................................. 400,000 400,000
Salt Lake City, Utah, Airport Revenue, Series A, AMT,
5.20% due 06/01/98....................................... 100,000 100,000
Winston-Salem, North Carolina, COP, Risk Acceptance
Management Corp., 5.20% due 07/01/09..................... 200,000 200,000
------------
Total Variable Rate Demand Notes (cost: $2,390,000) 2,390,000
------------
TOTAL SECURITIES (COST: $8,135,866) - 103.51% 8,135,866
OTHER ASSETS AND LIABILITIES, NET - (3.51)% (275,941)
------------
NET ASSETS - 100.00% $ 7,859,925
------------
------------
<CAPTION>
Atlas California Insured Intermediate Municipal Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
BONDS - 97.68%
Benicia Unified School District, Series A, AMBAC Insured,
6.45% due 08/01/01....................................... $ 125,000 $ 138,155
Cupertino Unified School District, Series A, FGIC Insured,
6.75% due 08/01/05....................................... 500,000 580,590
East Bay Municipal Utility District Water System Revenue
Refunding, AMBAC Insured, 6.38% due 06/01/21............. 500,000 564,015
Elk Grove Unified School District, Special Tax Refunding,
Community Facilities District 1, AMBAC Insured, 6.50% due
12/01/06................................................. 600,000 684,846
Escondido Joint Powers Financing Authority Revenue
Refunding, Series A, AMBAC Insured, 4.80% due 09/01/03... 100,000 101,404
Folsom School Facilities Project, Series B, FGIC Insured,
6% due 08/01/96.......................................... 230,000 233,300
6% due 08/01/97.......................................... 405,000 418,596
6% due 08/01/98.......................................... 425,000 446,118
6% due 08/01/99.......................................... 225,000 239,431
Fresno Sewer Revenue, Series A, MBIA Insured, 6% due
09/01/07................................................. 500,000 549,345
Fresno Water System Revenue, Water Remediation Project,
Series A, FGIC Insured,
7.50% due 06/01/04....................................... 500,000 598,540
7.50% due 06/01/05....................................... 715,000 855,233
Los Angeles County Metropolitan Transportation Authority
Sales Tax Revenue,
Second Series A, AMBAC Insured, 5.90% due 07/01/06....... 500,000 546,260
Series B, AMBAC Insured, 8% due 07/01/00................. 500,000 576,590
Los Angeles County Transportation Commission, Sales Tax
Revenue, Refunding, Series A, FGIC Insured, 6.75% due
07/01/18................................................. 2,000,000 2,279,120
Los Angeles Wastewater System Revenue, Series B,
AMBAC Insured, 5.90% due 06/01/03........................ 450,000 489,361
MBIA Insured, 6% due 12/01/98............................ 250,000 263,935
MBIA Insured, 8.80% due 06/01/99......................... 290,000 332,555
Northern California Power Agency, Public Power Revenue,
MBIA Insured, 6.125% due 08/15/99........................ 900,000 962,055
Pleasanton Joint Powers Financing Authority, Water and
Sewer Revenue Refunding, Series A, MBIA Insured, 5.50%
due 09/01/98............................................. 550,000 570,537
Puerto Rico, Electric Power Authority Power Revenue, MBIA
Insured, Series W, 6.50% due 07/01/05.................... 250,000 285,415
Series Y, 6.50% due 07/01/06............................. 500,000 572,160
Puerto Rico, Public Buildings Authority Revenue, Series A,
AMBAC Insured, 6.75% due 07/01/04........................ 700,000 809,214
Riverside County Transportation Commission, Sales Tax
Revenue, Series A, AMBAC Insured, 6.625% due 06/01/02.... 1,000,000 1,122,050
</TABLE>
16 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Insured Intermediate Municipal Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Sacramento Municipal Utility District, Electric Revenue
Refunding, FGIC Insured,
Series Z, 5.70% due 07/01/98............................. $ 500,000 $ 520,555
Series Z, 6% due 07/01/02................................ 475,000 517,588
San Buenaventura Water Revenue Refunding, AMBAC Insured,
4.10% due 10/01/00....................................... 410,000 407,179
San Diego County Regional Transportation Commission, Sales
Tax Revenue, Second Series A, FGIC Insured, 6.25% due
04/01/03................................................. 1,000,000 1,107,220
San Diego Public Utilities Board Facilities Financing
Authority Sewer Revenue, FGIC Insured, 6% due 05/15/05... 250,000 275,580
San Francisco Bay Area Rapid Transit District, Sales Tax
Revenue, FGIC Insured,
6% due 07/01/99.......................................... 300,000 318,840
6.20% due 07/01/01....................................... 750,000 818,813
San Francisco International Airport Revenue, Second
Series-Issue 1, AMBAC Insured, 6.10% due 05/01/98........ 1,000,000 1,047,290
San Francisco Sewer Revenue, AMBAC Insured,
Series A, 7.50% due 10/01/05............................. 500,000 551,400
6.50% due 10/01/10....................................... 250,000 269,323
6.50% due 10/01/16....................................... 500,000 551,400
San Jose Redevelopment Agency Tax Allocation, Merged Area
Redevelopment Project Refunding, MBIA Insured, 5.50% due
08/01/00................................................. 395,000 418,072
Santa Clara Electric Revenue, Series A, MBIA Insured,
5.75% due 07/01/99....................................... 640,000 675,008
5.80% due 07/01/00....................................... 250,000 266,688
State Health Facilities Financing Authority Revenue
Refunding, Unihealth America, AMBAC Insured, 7.625% due
10/01/15................................................. 1,100,000 1,225,136
Turlock Irrigation District Revenue Refunding, Series A,
MBIA Insured, 5.90% due 01/01/02......................... 180,000 194,114
University of Puerto Rico, University Revenues Refunding,
Series N, MBIA Insured, 6% due 06/01/99.................. 1,000,000 1,062,020
------------
Total Bonds (cost: $23,710,329) 24,445,051
------------
VARIABLE RATE DEMAND NOTES* - .80%
Los Angeles Regional Airport Improvement Authority, Lease
Revenue American Airlines, Series F, 6% due 12/01/24..... 100,000 100,000
State Pollution Control Revenue Financing Authority
Refunding, Resources Recovery Revenue, Ultrapower,
Malaga, Series A, AMT, 6.05% due 04/01/17................ 100,000 100,000
------------
Total Variable Rate Demand Notes (cost: $200,000) 200,000
------------
TOTAL SECURITIES (COST: $23,910,329) - 98.48% 24,645,051
OTHER ASSETS AND LIABILITIES, NET - 1.52% 380,446
------------
NET ASSETS - 100.00% $ 25,025,497
------------
------------
<CAPTION>
Atlas National Insured Intermediate Municipal Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
BONDS - 96.59%
Alpine, Utah, School District Refunding, AMBAC Insured,
6.60% due 03/15/98....................................... $ 820,000 $ 864,805
Arizona State Transportation Board Excise Tax Revenue,
Maricopa County Regional Area, MBIA Insured, 6.80% due
07/01/98................................................. 200,000 213,372
Maricopa County Regional Area B, Refunding, AMBAC
Insured, 6% due 07/01/05................................. 600,000 660,210
Boulder, Larimer & Weld Counties, Colorado, School
District RE1J, Series A, Refunding, MBIA Insured, 5.80%
due 12/15/07............................................. 500,000 530,435
Chicago, Illinois, Wastewater Transmission Revenue, MBIA
Insured, 7.20% due 11/15/19.............................. 500,000 563,945
Cook County, Illinois, MBIA Insured, 7.25% due 11/01/07... 620,000 747,168
Denver Metropolitan Major League Baseball Stadium
District, Colorado, Revenue Refunding & Sales Tax, Series
A, FGIC Insured, 6% due 10/01/11......................... 600,000 657,132
Eagle, Garfield & Routt Counties, Colorado School District
50J, FGIC Insured, 6.10% due 12/01/03.................... 400,000 442,800
Florida State Board Finance Department, General Services
Revenues, Save Our Coast, Series I, MBIA Insured, 6.50%
due 07/01/98............................................. 600,000 635,370
Franklin, Massachusetts, Series 95, MBIA Insured, 6.25%
due 11/15/04............................................. 500,000 557,615
Fresno, California Water Systems Revenue, Water
Remediation, Series A, FGIC Insured, 7.50% due
06/01/03................................................. 600,000 710,610
Johnson County, Kansas, Refunding, Internal Improvement,
Series A, FSA Insured, 5.60% due 09/01/03................ 750,000 800,385
Los Angeles, California, Wastewater System Revenue, Series
B, MBIA Insured, 8.80% due 06/01/99...................... 200,000 229,348
Massachusetts State Construction Loan, Series A, FGIC
Insured, 6.90% due 03/01/04.............................. 255,000 275,234
Mesa, Arizona, MBIA Insured, 6.75% due 07/01/05........... 375,000 434,014
North Reading, Massachusetts, Refunding, MBIA Insured,
6.30% due 06/15/01....................................... 500,000 548,455
Pawtucket, Rhode Island, FGIC Insured, 7.75% due
04/15/98................................................. 750,000 809,348
Poudre Valley, Colorado, Hospital District Revenue, AMBAC
Insured, 6.625% due 12/01/11............................. 650,000 734,390
Puerto Rico Commonwealth, Public Improvement, MBIA
Insured, 5.50% due 07/01/01.............................. 700,000 742,728
Puerto Rico, Electric Power Authority Power Revenue, MBIA
Insured, 6.50% due 07/01/06.............................. 500,000 572,160
Rhode Island State, Refunding, Series A, FGIC Insured, 6%
due 06/15/02............................................. 500,000 543,095
</TABLE>
17
<PAGE>
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Insured Intermediate Municipal Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Shawnee County, Kansas Unified School District 501, FGIC
Insured, 7.30% due 02/01/02.............................. $ 500,000 $ 576,835
Thornton, Colorado, Refunding, FGIC Insured, 5.65% due
12/01/03................................................. 600,000 645,780
University of Colorado, University Revenue Refunding, Resh
Building Revolving Fund, MBIA Insured, 6% due 06/01/05... 620,000 678,292
University of Puerto Rico, University Revenue Refunding,
Series N, MBIA Insured, 6% due 06/01/99.................. 650,000 690,313
Wareham, Massachusetts, School Project Loan Bonds, AMBAC
Insured, 6.60% due 01/15/99.............................. 110,000 117,825
Westminster, Colorado Sales & Use Tax Revenue, Series A,
FGIC Insured, 6.25% due 12/01/12......................... 500,000 535,865
------------
Total Bonds (cost: $14,977,710) 15,517,529
------------
VARIABLE RATE DEMAND NOTES* - 1.24%
Butte-Silver Bow, Montana, Pollution Control Revenue
Refunding, Rhone-Poulenc, Inc. Project, 5.10% due
03/01/16................................................. 100,000 100,000
Richmond, Virginia, Industrial Development Authority
Revenue, Cogentrix Project, Series B, AMT, 6.20% due
12/01/17................................................. 100,000 100,000
------------
Total Variable Rate Demand Notes (cost: $200,000) 200,000
------------
TOTAL SECURITIES (COST: $15,177,710) - 97.83% 15,717,529
OTHER ASSETS AND LIABILITIES, NET - 2.17% 348,642
------------
NET ASSETS - 100.00% $ 16,066,171
------------
------------
<CAPTION>
Atlas U.S. Government Intermediate Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
UNITED STATES TREASURY OBLIGATIONS - 57.62%
Treasury Notes
4.625% due 02/15/96...................................... $ 2,650,000 $ 2,648,331
5.50% - 5.75% due 09/30/97 - 10/31/97.................... 775,000 780,027
6.875% due 10/31/96...................................... 271,000 274,472
8.00% - 8.75% due 10/15/96 - 10/15/97.................... 1,217,000 1,273,316
------------
Total United States Treasury Notes (cost: $4,951,501) 4,976,146
------------
U.S. GOVERNMENT AGENCIES - 41.35%
Federal National Mortgage Association
6.50% due 11/01/02....................................... 2,011,096 2,033,278
7.00% due 11/01/25....................................... 1,524,299 1,537,180
------------
Total U.S. Government Agencies (cost: $3,542,908) 3,570,458
------------
TOTAL SECURITIES (COST: $8,494,409) - 98.97% 8,546,604
OTHER ASSETS AND LIABILITIES, NET - 1.03% 88,566
------------
NET ASSETS - 100.00% $ 8,635,170
------------
------------
<CAPTION>
Atlas California Municipal Bond Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
BONDS - 97.39%
Acalanes Unified High School District, Series C, FGIC
Insured, 6.25% due 08/01/14.............................. $ 500,000 $ 519,095
6.25% due 08/01/15....................................... 500,000 519,510
Alameda County, COP, BIG Insured, 7.25% due 12/01/08...... 1,000,000 1,147,230
Benicia Unified School District, Series A, AMBAC Insured,
6.85% due 08/01/16....................................... 1,000,000 1,116,830
Big Bear Lake Water Revenue Refunding, FGIC Insured, 6.25%
due 04/01/12............................................. 500,000 535,490
Brea Public Financing Authority Revenue, Tax Allocation
Redevelopment Project, Series A, MBIA Insured,
6.75% due 08/01/22....................................... 2,250,000 2,539,734
Burbank-Glendale-Pasadena Airport Revenue Refunding, AMBAC
Insured, 6.40% due 06/01/10.............................. 2,000,000 2,152,100
Calleguas Municipal Water District, System Improvement
Project, COP, AMBAC Insured, 6.25% due 07/01/11.......... 1,680,000 1,873,570
Contra Costa Water Treatment Revenue Refunding, Series G,
MBIA Insured, 5.90% due 10/01/08......................... 4,600,000 4,921,034
Cotati-Rohnert Park Unified School District, Series B,
FGIC Insured, 6% due 08/01/14............................ 845,000 876,096
6% due 08/01/15.......................................... 905,000 937,100
East Bay, California Municipal Utility District Water
System, MBIA Insured, 7.50% due 06/01/18................. 850,000 979,226
Elk Grove Unified School District, Community Facilities
District 1, AMBAC Insured, 6.50% due 12/01/24............ 500,000 597,505
Fresno, Sewer Revenue, Series A, MBIA Insured, 6.00% due
09/01/10................................................. 1,000,000 1,097,210
Kern, California High School District, MBIA Insured,
Series 1990-C, 6.25% due 08/01/12........................ 1,200,000 1,354,608
Long Beach Harbor Revenue, MBIA Insured, AMT, 5.25% due
05/15/25................................................. 2,000,000 1,913,400
Los Angeles Convention and Exhibition Center Authority
Refunding, COP, AMBAC Insured, 7% due 08/15/08........... 500,000 568,360
Los Angeles Department of Water and Power, Electric Plant
Revenue, 7.10% due 01/15/31.............................. 500,000 565,575
7.125% due 05/15/30...................................... 1,875,000 2,106,506
Los Angeles Harbor Development Revenue Bond Issue of 1988,
7.60% due 10/01/18....................................... 140,000 162,389
Los Angeles Transportation Commission, Sales Tax Revenue,
Series A, 6.90% due 07/01/21............................. 1,000,000 1,146,860
Series A, MBIA Insured, 6.25% due 07/01/13............... 8,980,000 9,589,652
Series B, AMBAC Insured, 6.50% due 07/01/13.............. 1,750,000 1,897,245
Los Angeles Wastewater Systems Revenue,
Series A, MBIA Insured, 5.878% due 06/01/24.............. 2,250,000 2,323,350
Series B, AMBAC Insured, 6.25% due 06/01/12.............. 2,500,000 2,678,825
</TABLE>
18 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Series B, AMBAC Insured, 7% due 06/01/11................. $ 1,000,000 $ 1,111,800
Series C, AMBAC Insured, 7% due 06/01/11................. 1,000,000 1,098,620
Series D, MBIA Insured, 6.70% due 12/01/21............... 3,000,000 3,390,630
MSR Public Power Agency, San Juan Project Revenue,
Series C, BIG Insured,
6.625% due 07/01/13...................................... 1,300,000 1,356,186
Series E, MBIA Insured,
6.75% due 07/01/11....................................... 3,000,000 3,340,200
Marin Municipal Water District, Water Revenue, MBIA
Insured, 5.55% due 07/01/13.............................. 750,000 756,060
5.65% due 07/01/23....................................... 2,500,000 2,536,700
Metropolitan Water District of Southern California
Waterworks Revenue, 5.50% due 07/01/19................... 3,000,000 2,980,410
6.625% due 07/01/12...................................... 4,540,000 4,932,937
Series A1, 5.50% due 03/01/12............................ 1,500,000 1,538,985
Series B, 5.45% due 03/01/13............................. 815,000 821,960
Series G, 6.50% due 03/01/12............................. 2,500,000 2,698,575
Mountain View Capital Improvements Financing Authority,
City Hall Community Theater, MBIA Insured, 6.25% due
08/01/12................................................. 1,500,000 1,599,480
New Haven Unified School District, MBIA Insured, 5.75% due
08/01/11................................................. 925,000 959,836
Northern California Power Agency, Public Power Revenue,
AMBAC Insured, 7.50% due 07/01/23........................ 50,000 63,227
Hydroelectric Project 1, Series A, MBIA
Insured, 6.25% due 07/01/12.............................. 1,500,000 1,612,650
Northern California Transmission Revenue, Series A, MBIA
Insured, 5.25% due 05/01/20.............................. 1,000,000 977,090
Oakland Redevelopment Agency,
Pension Financing, Series A, FGIC Insured, 7.60% due
08/01/21................................................. 1,250,000 1,374,637
Tax Allocation, Central District, AMBAC Insured, 7.50%
due 02/01/14............................................. 1,000,000 1,023,390
Orange County Sanitation District, COP 1, 2, 3, 5, 6, 7,
and 11, Series B, FGIC Insured, 6% due 08/01/16.......... 2,000,000 2,208,240
Oxnard Financing Authority, Wastewater Revenue Refunding,
FGIC Insured, 5.50% due 06/01/14......................... 500,000 497,115
Pleasanton Unified School District, Series F, FGIC
Insured, 6.25% due 08/01/14.............................. 570,000 597,092
6.25% due 08/01/15....................................... 610,000 638,993
6.25% due 08/01/16....................................... 650,000 680,895
Puerto Rico Commonwealth, MBIA Insured, 6.25% due
07/01/12................................................. 1,000,000 1,138,140
Puerto Rico Electric Power Authority Revenue, 6.50% due
07/01/06................................................. 1,000,000 1,144,320
Puerto Rico Public Buildings Authority Revenue, Series A,
AMBAC Insured,
6.25% due 07/01/10....................................... 1,000,000 1,126,760
6.25% due 07/01/14....................................... 1,000,000 1,135,400
Riverside Electric Revenue, 6% due 10/01/15............... 1,500,000 1,541,625
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Sacramento City Financing Authority Revenue, 6.80% due
11/01/20................................................. $ 3,000,000 $ 3,445,350
Sacramento Municipal Utility District Electric Revenue,
Refunding,
Series C, MBIA Insured,
5.75% due 11/15/09....................................... 1,880,000 1,966,254
Series Z, FGIC Insured, 6.45% due 07/01/10............... 2,500,000 2,704,400
Sacramento Municipal Utility District Electric Revenue,
Series D, FGIC Insured, 5.25% due 11/15/12............... 2,000,000 2,004,460
San Bernardino County, COP, Project J, Series B, 6.25% due
08/01/19................................................. 3,500,000 3,852,135
San Bernardino Health Care System Revenue, Sisters of
Charity, Series A, 7% due 07/01/21....................... 3,230,000 3,585,138
San Bernardino Transportation Authority, Sales Tax
Revenue, Series A, FGIC Insured, 6% due 03/01/10......... 2,500,000 2,646,925
San Diego, General Obligation, Public Safety Communication
Project, 6.50% due 07/15/09.............................. 1,525,000 1,751,340
San Diego County Regional Transportation Commission, Sales
Tax Revenue, Series A, FGIC Insured, 5.50% due
04/01/07................................................. 2,100,000 2,198,595
San Diego Public Facilities Financing Authority, Sewer
Revenue, FGIC Insured,
5.00% due 05/15/20....................................... 1,000,000 967,120
5.00% due 05/15/25....................................... 1,125,000 1,084,680
San Francisco City and County,
Series A & B, FGIC Insured, 5.50% due 06/15/13........... 1,145,000 1,168,667
Series E, 6.50% due 06/15/11............................. 2,220,000 2,359,949
San Francisco City and County Airports, Community
International Airport Revenue, Series 1, AMBAC Insured,
6.30% due 05/01/11....................................... 3,000,000 3,232,860
6.50% due 05/01/13....................................... 2,000,000 2,185,780
San Francisco City and County Public Utilities, Community
Water Revenue,
Series A,
6% due 11/01/15.......................................... 1,000,000 1,033,840
6.50% due 11/01/17....................................... 1,000,000 1,080,000
San Francisco City and County Sewer Revenue Refunding,
AMBAC Insured, 6% due 10/01/11........................... 2,280,000 2,413,357
5.50% due 10/01/15....................................... 1,750,000 1,747,742
San Jose-Santa Clara Water Financing Authority, Sewer
Revenue, Series A, FGIC Insured, 5.375% due 11/15/20..... 1,000,000 999,250
Santa Clara Electric Revenue, Series A, MBIA Insured,
6.25% due 07/01/19....................................... 3,750,000 3,958,762
Santa Clara Local Government Finance Authority, Revenue
Refunding, BIG Insured, 7.25% due 02/01/13............... 250,000 277,955
Santa Monica-Malibu Unified School District, Public School
Facilities Reconstruction, Project A, 6.90% due
08/01/11................................................. 500,000 546,715
Saugus Unified School District, Series A, MBIA Insured,
5.65% due 09/01/11....................................... 2,035,000 2,090,678
</TABLE>
19
<PAGE>
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Southern California Public Power Authority, Power Project,
Revenue Refunding,
Hydroelectric Hoover, 6.625% due 10/01/05................ $ 600,000 $ 664,218
Palos Verdes, Series A, 6.13% due 07/01/97............... 250,000 257,787
Southern California Public Power Authority, Transmission
Project Revenue Refunding, 5.75% due 07/01/10............ 2,000,000 2,038,200
Southern California Rapid Transit District, COP, MBIA
Insured, 6% due 07/01/10................................. 1,000,000 1,053,780
State Department of Water Resources, Central Valley
Project,
Series I, 6.60% due 12/01/19............................. 2,000,000 2,223,620
Series J, 6.125% due 12/01/13............................ 2,225,000 2,339,298
Series J-3, 5.50% due 12/01/23........................... 3,000,000 2,966,100
Series M, 4.875% due 12/01/27............................ 1,000,000 920,480
Series O, 5.00% due 12/01/15............................. 2,000,000 1,936,200
State Educational Facilities Authority Revenue,
Pepperdine University, MBIA Insured, 6.10% due
03/15/14................................................. 2,595,000 2,750,544
Santa Clara University, MBIA Insured, 5.75% due
09/01/18................................................. 3,255,000 3,322,476
University of Southern California, 5.65% due 10/01/08.... 1,000,000 1,048,040
State Health Facilities Finance Authority Revenue,
Adventist Health Systems West, Series B, MBIA Insured,
6.40% due 03/01/02....................................... 1,000,000 1,107,000
Catholic Healthcare West, AMBAC Insured, 7% due
07/01/06................................................. 1,365,000 1,520,514
Catholic Healthcare West, Series A, AMBAC Insured, 7% due
07/01/20................................................. 800,000 891,144
Children's Hospital, Los Angeles, Series A, 7.125% due
06/01/21................................................. 2,250,000 2,596,073
San Diego Hospital, Series B, MBIA Insured, 6.125% due
08/01/11................................................. 1,125,000 1,189,901
Sutter Health Systems, AMBAC Insured, 6.70% due
01/01/13................................................. 1,000,000 1,069,370
State Maritime Infrastructure Authority, Airport Revenue,
San Diego Unified Port District, AMBAC Insured, 5.00% due
11/01/20................................................. 2,000,000 1,865,280
State Pollution Control Financing Authority, Pollution
Control Revenue, Atlantic Richfield Co., 9.125% due
11/01/04................................................. 2,000,000 2,048,280
State Public Works Lease Revenue, Department of
Corrections, Series A, 6.50% due 09/01/19................ 1,650,000 1,864,830
Truckee-Donner Public Utility District, COP, MBIA Insured,
6.75% due 11/15/21....................................... 1,000,000 1,106,300
University of Puerto Rico, University Revenues, 6.25% due
06/01/07................................................. 1,000,000 1,127,160
Vallejo Revenue Water Improvement Project J, Series B,
FGIC Insured, 6.50% due 11/01/14......................... 4,000,000 4,352,040
<CAPTION>
Atlas California Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Watsonville Water Revenue, MBIA Insured, 6% due
05/15/16................................................. $ 1,915,000 $ 1,984,518
------------
Total Bonds (cost: $168,906,002) 182,545,558
------------
VARIABLE RATE DEMAND NOTES* - 1.12%
Los Angeles Community Redevelopment Agency, Willowbrook
Project, 4% due 11/01/15................................. 300,000 300,000
Los Angeles Regional Airport Improvement Corp., Lease
Revenue, American Airlines - LAX, Series E, 4.95% due
12/01/24................................................. 100,000 100,000
State Health Facilities Financing Authority Revenue,
Refunding, St. Francis Memorial Hospital, Series B, 4.80%
due 11/01/19............................................. 400,000 400,000
State Pollution Control Financing Authority Revenue,
Burney Forest Project, Series A, AMT, 4.25% due
09/01/20................................................. 300,000 300,000
Delano Project, Series 1991, AMT, 4.20% due 08/01/19..... 100,000 100,000
Exxon Project, 4.80% due 12/01/12........................ 200,000 200,000
Honey Lake Power Project, AMT, 4.05% due 09/01/18........ 200,000 200,000
Ultrapower - Malaga, Series B, AMT, 4.55% due 04/01/17... 100,000 100,000
Ultrapower-Rocklin, Series A, AMT, 3.40% due 06/01/17.... 200,000 200,000
Ultrapower-Rocklin, Series B, AMT, 4.10% due 06/01/17.... 200,000 200,000
------------
Total Variable Rate Demand Notes (cost: $2,100,000) 2,100,000
------------
TOTAL SECURITIES (COST: $171,006,002) - 98.51% 184,645,558
OTHER ASSETS AND LIABILITIES, NET - 1.49% 2,799,028
------------
NET ASSETS - 100.00% $187,444,586
------------
------------
<CAPTION>
Atlas National Municipal Bond Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
BONDS - 103.38%
Adams County, Colorado School District 12, Series A, MBIA
Insured, 6.75% due 12/15/07.............................. $ 1,065,000 $ 1,251,130
Alexandria, Louisiana, Utility Revenue, FGIC Insured,
8.20% due 05/01/07....................................... 50,000 54,302
Anchorage, Alaska, Electric Utility Revenue Refunding,
MBIA Insured, 8% due 12/01/10............................ 985,000 1,282,923
Arapahoe County Colorado School District 005, Cherry
Creek, Series A, 5.25% due 12/15/02...................... 500,000 525,850
Arapahoe County Colorado School District 006, Littleton,
Series A, 5.50% due 12/01/06............................. 750,000 793,537
</TABLE>
20 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Austin, Texas Airport Systems Revenue, Series A, MBIA
Insured, AMT, 6.50% due 11/15/04......................... $ 1,000,000 $ 1,119,350
Boulder, Larimer & Weld Counties, Colorado School District
RE1J, Refunding, Series A, MBIA Insured, 5.80% due
12/15/07................................................. 1,500,000 1,591,305
Chicago, Illinois Metropolitan Water Reclamation District,
Greater Chicago Capital Improvement, 7.25% due
12/01/12................................................. 1,500,000 1,864,545
Chicago, Illinois, Park District Aquarium & Museum, Series
B, 6.50% due 11/15/13.................................... 2,500,000 2,743,375
Chicago, Illinois, Public Building Commission, Board of
Education, Series A,
FGIC Insured, 7.50% due 01/01/99......................... 500,000 548,500
MBIA Insured, 7.125% due 01/01/15........................ 125,000 142,388
Cleveland, Ohio, Waterworks Revenue Refunding, Series
F-92B, AMBAC Insured, 6.25% due 01/01/16................. 1,000,000 1,070,940
Colorado Springs, Colorado Utilities Revenue,
Series A, 6.50% due 11/15/15............................. 2,000,000 2,183,080
Series C, 6.75% due 11/15/21............................. 500,000 571,630
Cumberland County, New Jersey, Waste Disposal Revenue,
FGIC Insured, 6% due 01/01/01............................ 500,000 532,670
Dade County, Florida, Water and Sewer Revenue, FGIC
Insured, 5.50% due 10/01/15.............................. 1,000,000 1,011,130
Denver, Colorado, City and County Water Refunding, 5% due
10/01/10................................................. 1,500,000 1,507,935
Forest Hills, Michigan, Public Schools Refunding, 6.25%
due 05/01/15............................................. 875,000 930,974
Fort Collins, Colorado Wastewater Utility Enterprise,
Revenue Refunding, FGIC Insured, 5.375% due 12/01/09..... 750,000 768,630
Georgia Municipal Electric Authority, Power Revenue Bonds,
Series O, 8.125% due 01/01/17............................ 50,000 54,475
Highlands Ranch, Colorado, Metropolitan District 2, 6.50%
due 06/15/09............................................. 1,960,000 2,148,532
Houston, Texas, General Obligation Refunding, Series D,
5.25% due 03/01/10....................................... 500,000 502,335
Illinois Health Facilities Authority, Revenue Refunding,
Sherman Hospital Project, MBIA Insured, 6.75% due
08/01/11................................................. 1,000,000 1,102,110
Indiana State Office Building Commission, Capital Complex
Revenue, Senate Avenue Parking, Series A, MBIA Insured,
7.25% due 07/01/12....................................... 50,000 57,074
Jacksonville, Florida, Electric Utility Revenue, Crossover
Refunding, Saint John's River Power, 1989 Series, 6.50%
due 10/01/14............................................. 500,000 534,945
Kansas City, Kansas, Utility Systems Revenue, FGIC
Insured, 6.375% due 09/01/23............................. 1,500,000 1,640,865
Kentucky Infrastructure Authority Revenue, Series C, 7.50%
due 02/01/18............................................. 400,000 446,864
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Kern County, California High School District, Series
1990-C, 6.25% due 08/01/10............................... $ 545,000 $ 611,555
Lakota, Ohio Local School District, AMBAC Insured, 7% due
12/01/09................................................. 1,740,000 2,091,793
Lansing, Illinois, General Obligation, Unlimited Tax, FGIC
Insured, 8.25% due 12/01/07.............................. 25,000 27,508
Los Angeles, California, Wastewater System Revenue, Series
D, MBIA Insured, 6.70% due 12/01/21...................... 1,000,000 1,130,210
Maricopa County, Arizona, Unified School District 69,
Paradise Valley, MBIA Insured, 6.35% due 07/01/10........ 600,000 682,188
Massachusetts Health and Educational Facilities Authority
Revenue, Northeastern University, Series E, MBIA Insured,
6.55% due 10/01/22....................................... 500,000 548,665
Massachusetts State Water Resource Authority, Series A,
6.50% due 07/15/21....................................... 525,000 595,954
7% due 04/01/18.......................................... 1,000,000 1,125,580
Metropolitan Pier & Exposition Authority, Illinois,
Dedicated State Tax Revenue, 7.25% due 06/15/05.......... 250,000 293,077
Michigan State University Revenue, Series A, 6.125% due
08/15/08................................................. 500,000 530,615
Missouri Health and Educational Facilities Authority, St.
Luke's Hospital, Kansas City, MBIA Insured, 6.50% due
11/15/17................................................. 500,000 565,190
New York City Municipal Water Finance Authority, Water &
Sewer Systems Revenue, Series B, FGIC Insured, 7.625% due
06/15/17................................................. 125,000 137,466
New York State Dormitory Authority, New York College and
University, Pooled Capital Program, FGIC Insured, 7.80%
due 12/01/05............................................. 185,000 204,283
North Central Texas Health Facilities Development
Corporation, 6.25% due 05/15/10.......................... 1,000,000 1,094,680
Northern California Power Agency Public Revenue Refunding,
Hydroelectric Project 1, Series A, MBIA Insured, 6.25%
due 07/01/12............................................. 750,000 806,325
Northumberland County, Pennsylvania, Commonwealth Lease
Revenue, MBIA Insured, 6.25% due 10/15/09................ 750,000 809,888
Puerto Rico Commonwealth, Refunding, MBIA Insured, 6.25%
due 07/01/12............................................. 2,000,000 2,276,280
Puerto Rico Electric Power Authority Revenue, Series 2014,
7.125% due 07/01/14...................................... 630,000 701,587
Sacramento, California, Municipal Utility District
Electric Revenue Refunding, Series Z, FGIC Insured, 6.45%
due 07/01/10............................................. 600,000 649,056
Salt Lake City, Utah, Hospital Revenue Refunding, IHC
Hospitals, Inc., Series A, 7.60% due 02/15/20............ 1,000,000 1,121,200
Salt River Project, Arizona, Agriculture Improvement and
Power District, Electric Systems Revenue, Series A, 7.50%
due 01/01/27............................................. 50,000 52,922
</TABLE>
21
<PAGE>
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Shawnee County, Kansas Unified School District 345, MBIA
Insured, 5.50% due 09/01/12.............................. $ 1,195,000 $ 1,224,708
Springfield, Illinois, Unlimited Tax, General Obligation,
6.30% due 12/01/13....................................... 100,000 103,817
Superior, Wisconsin, Industrial Development Revenue,
Detroit Edison, Midwest Energy Resources Company, FGIC
Insured, 6.90% due 08/01/21.............................. 500,000 612,140
Tacoma, Washington, Electric System Revenue, 7.50% due
01/01/12................................................. 100,000 112,128
Texas Health Facilities Development Corporation Hospital
Revenue, Cook-Fort Worth Children's Center, FGIC Insured,
6.25% due 12/01/12....................................... 1,000,000 1,065,330
University of Maryland, Auxiliary Facilities and Tuition
Revenue, Series A, 6.30% due 02/01/10.................... 500,000 541,335
University of Nevada, University Revenue Refunding,
Community College System, AMBAC Insured, 5.50% due
07/01/11................................................. 1,000,000 1,021,520
University of Puerto Rico, University Revenues Refunding,
Series N, MBIA Insured, 6.25% due 06/01/06............... 2,000,000 2,253,040
University of Texas Permanent University Fund, Series
1991, 6.50% due 07/01/11................................. 500,000 542,070
Vallejo, California, Revenue, Water Improvement Project,
Series B, FGIC Insured, 6.50% due 11/01/14............... 1,000,000 1,088,010
Washington Public Power Supply System, Refunding Revenue,
Nuclear Project 1, Series A, 7.50% due 07/01/15.......... 260,000 290,704
Nuclear Project 2, Series A, 7.25% due 07/01/06.......... 500,000 583,270
Nuclear Project 2, Series A, 7.375% due 07/01/12......... 1,000,000 1,146,570
Nuclear Project 2, Series B, 7% due 07/01/12............. 140,000 153,531
Nuclear Project 3, Series B, 7.20% due 07/01/99.......... 250,000 272,393
Wayne Charter County, Michigan, Airport Revenue, Detroit
Metropolitan, MBIA Insured, 6.50% due 12/01/11........... 500,000 565,570
West Virginia, School Building Authority Revenue, MBIA
Insured, 7.25% due 07/01/15.............................. 50,000 57,074
Westminster, Colorado Sales & Use Tax Revenue, Series A,
FGIC Insured, 6.25% due 12/01/12......................... 1,500,000 1,607,597
------------
Total Bonds (cost: $52,338,386) 56,278,223
------------
VARIABLE RATE DEMAND NOTES* - 1.29%
Delaware Economic Development Authority, Delmarva Project,
AMT, 3% due 10/01/29..................................... 400,000 400,000
Texas, Lone Star Airport, 4.05% due 12/01/14.............. 100,000 100,000
<CAPTION>
Atlas National Municipal Bond Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Winston-Salem, North Carolina, Risk Acceptance Management
Corp., 2.65% due 07/01/09................................ $ 200,000 $ 200,000
------------
Total Variable Rate Demand Notes (cost: $700,000) 700,000
------------
TOTAL SECURITIES (COST: $53,038,386) - 104.67% 56,978,223
OTHER ASSETS AND LIABILITIES, NET - (4.67)% (2,540,164)
------------
NET ASSETS - 100.00% $ 54,438,059
------------
------------
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES - 99.21%
Federal Home Loan Mortgage Corporation
7.00% due 2023 - 2024.................................... $11,027,972 $ 11,132,738
7.50% due 2023 - 2024.................................... 20,129,646 22,904,032
8.00% due 2020 - 2024.................................... 16,678,513 17,305,743
8.50% due 2017 - 2022.................................... 8,741,135 9,154,005
9.00% due 2017 - 2024.................................... 9,925,810 10,477,400
9.50% due 2016 - 2021.................................... 1,873,528 1,998,424
10.00% due 2017 - 2020................................... 214,334 233,760
10.50% due 2018 - 2020................................... 257,977 284,922
Federal National Mortgage Association
6.50% due 2023........................................... 6,400 6,326
7.00% due 2023 - 2025.................................... 45,385,670 45,772,700
7.50% due 2024 - 2025.................................... 25,601,390 26,244,498
8.00% due 2024 - 2025.................................... 61,107,637 63,312,272
8.50% due 2024 - 2025.................................... 13,697,360 14,308,524
9.00% due 2021 - 2025.................................... 20,706,182 21,823,913
9.50% due 2020........................................... 85,191 90,804
Government National Mortgage Association
7.50% due 2022 - 2024.................................... 8,681,276 8,947,801
8.00% due 2023 - 2025.................................... 3,063,606 3,193,974
8.50% due 2016 - 2020.................................... 147,490 156,230
------------
Total U.S. Government Agencies (cost: $251,096,021) 257,348,066
------------
SHORT-TERM INVESTMENTS - 4.80%
6.14% FNMA Floating Collateralized Mortgage Obligation due
1998..................................................... 364,668 366,831
6.24% FNMA Floating Collateralized Mortgage Obligation due
1998..................................................... 448,773 451,857
6.35% FHLMC Floating Collateralized Mortgage Obligation
due 1997................................................. 4,043,132 4,043,132
6.44% FNMA Floating Collateralized Mortgage Obligation due
1999..................................................... 606,057 609,845
6.45% FHLMC Floating Collateralized Mortgage Obligation
due 1999................................................. 633,775 638,725
</TABLE>
22 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas U.S. Government and Mortgage Securities Fund (continued)
- ---------------------------------------------------------------------------------------
value (note
face amount 1)
----------- ------------
<S> <C> <C>
Repurchase Agreement dated December 29, 1995 with Lehman
Government Securities, Inc., effective yield of 5.96%,
due January 2, 1996 with respect to $6,335,000 U.S.
Treasury Notes, 5.75%, September 30, 1997, with a value
of $6,476,050............................................ $ 6,350,000 $ 6,350,000
------------
Total Short-Term Investments (cost: $12,452,903) 12,460,390
------------
TOTAL SECURITIES (COST: $263,548,924) - 104.01% 269,808,456
OTHER ASSETS AND LIABILITIES, NET - (4.01)% (10,395,157)
------------
NET ASSETS - 100.00% $259,413,299
------------
------------
<CAPTION>
Atlas Balanced Fund
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
COMMON STOCKS - 33.96%
Banks - 15.50%
Banc One Corp. .......................................... 3,000 $ 113,250
BankAmerica Corp. ....................................... 3,500 226,625
BayBanks, Inc. .......................................... 2,000 196,500
Capital One Financial Corp. ............................. 5,000 119,375
Chase Manhattan Corp. ................................... 4,000 242,500
First Bank System, Inc. ................................. 3,500 173,687
First Chicago NBD Corp. ................................. 3,620 142,990
First Fidelity Bancorp................................... 2,500 188,437
First Union Corp. ....................................... 3,500 194,687
Fleet Financial Group, Inc. ............................. 3,000 122,250
Keycorp.................................................. 3,500 126,875
National City Corp. ..................................... 3,000 99,375
PNC Bank Corp. .......................................... 3,400 109,650
Signet Banking Corp. .................................... 5,000 118,750
UJB Financial Corp. ..................................... 5,000 178,750
Chemicals & Allied Products - 1.24%
Dexter Corp. ............................................ 5,000 118,125
Dow Chemical Co. ........................................ 1,000 70,375
Drugs and Health Care - 2.09%
American Home Products Corp. ............................ 1,500 145,500
Bristol-Myers Squibb Co. ................................ 2,000 171,750
Electrical Utilities - 2.34%
American Electric Power Co. ............................. 1,500 60,750
Centerior Energy Corp. .................................. 3,000 26,625
Entergy Corp. ........................................... 3,000 87,750
Florida Progress Corp. .................................. 2,000 70,750
Public Service Company of Colorado....................... 1,700 60,137
Public Service Enterprise Group.......................... 1,600 49,000
Electronics - 0.97%
Tektronix, Inc. ......................................... 3,000 147,375
Insurance - 2.93%
Allstate Corp. .......................................... 2,781 114,369
GCR Holdings, Ltd. (b)................................... 7,000 157,500
Reliance Group Holdings, Inc. ........................... 20,000 172,500
Oil & Gas - 5.50%
Mobil Corp. ............................................. 1,000 112,000
Occidental Petroleum Corp. .............................. 15,000 320,625
Phillips Petroleum Co. .................................. 5,000 170,625
Royal Dutch Petroleum Co. ADR............................ 700 98,787
Tenneco, Inc. ........................................... 1,100 54,588
<CAPTION>
Atlas Balanced Fund (continued)
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
Texaco, Inc. ............................................ 1,000 $ 78,500
Paper & Forest Products - 1.50%
Union Camp Corp. ........................................ 2,500 119,063
Weyerhaeuser Co. ........................................ 2,500 108,125
Retail Trade - 0.77%
Sears Roebuck & Co. ..................................... 3,000 117,000
Telecommunications - 1.12%
BCE, Inc. ............................................... 3,000 103,500
GTE Corp. ............................................... 1,500 66,000
------------
Total Common Stocks (cost: $3,990,756) 5,155,020
------------
CONVERTIBLE PREFERRED STOCKS - 23.59%
Airlines - .59%
Delta Airlines, Inc., Series C........................... 1,500 89,063
Banks - 0.60%
Citicorp, Series 13...................................... 500 91,438
Electrical Equipment - 1.04%
Westinghouse Electric Corp., Series C (a)................ 10,000 157,500
Electronics - 1.66%
Elsag Bailey Process Automation N.V. (a)................. 5,000 251,250
Environmental Management - 1.45%
Browning-Ferris Industries, Inc. ACES.................... 7,000 219,625
Financial Services - 1.10%
American Express Co. DECS................................ 3,000 166,500
Insurance - 1.22%
Allstate Corp. .......................................... 4,500 184,500
Industrials - 2.22%
Continental Air Finance Trust............................ 3,000 159,000
Owens-Corning Capital LLC MIPS (a)....................... 3,000 177,750
Metals Mining - 0.83%
Reynolds Metals Co. PRIDES............................... 2,500 126,563
Oil & Gas - 5.39%
Atlantic Richfield Co. .................................. 10,000 235,000
Noble Drilling Corp. .................................... 5,000 128,750
Santa Fe Energy Resources, Inc., Series A................ 20,000 197,500
Valero Energy Corp. ..................................... 5,000 257,500
Other Utilities - 1.58%
Enron Corp. ACES......................................... 10,000 240,000
Paper & Forest Products - 3.07%
Boise Cascade Corp., Series G ACES....................... 3,000 85,875
Bowater, Inc., Series B PRIDES........................... 2,500 76,250
James River Corp., Series P DECS......................... 13,000 303,875
Telephone Utilities - 2.84%
Compania de Inversiones en Telecommunicaciones SA PRIDES
(a)...................................................... 3,000 169,125
U.S. West, Inc. ......................................... 10,000 262,500
------------
Total Convertible Preferred Stocks (cost: $3,469,679) 3,579,564
------------
CONVERTIBLE BONDS - 10.08%
Airlines - 1.99%
AMR Corp., 6.125% due 11/01/24........................... $ 200,000 207,000
Delta Airlines, Inc., 3.23% due 06/15/03................. $ 100,000 95,000
Banks - 1.01%
Banco de Galicia y Buenos Aires ADS, 7% due 08/01/02..... $ 200,000 154,000
Drugs and Health Care - .71%
ICN Pharmaceuticals, Inc., 8.50% due 11/15/99............ $ 100,000 107,500
Industrials - 2.48%
ADT Operations, Inc., 0% due 07/06/10.................... $ 500,000 233,750
</TABLE>
23
<PAGE>
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Balanced Fund (continued)
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
U.S. Home Corp., 4.875% due 11/01/05..................... $ 150,000 $ 142,500
Insurance - 1.32%
Mutual Risk Management, 0% due 10/30/15 (a).............. $ 500,000 201,250
Metals Mining - 2.57%
Inco, Ltd., 5.75% due 07/01/04........................... $ 300,000 389,625
------------
Total Convertible Bonds (cost: $1,385,882) 1,530,625
------------
CORPORATE BONDS - 14.10%
Drugs and Health Care - 1.65%
R.P. Scherer Corp., 6.75% due 02/01/04................... $ 250,000 250,375
Finance & Banking - 1.84%
First Chicago NBD Bancorp., 7.25% due 08/15/04........... $ 175,000 186,929
Paine Webber Group, Inc., 7% due 03/01/00................ $ 90,000 91,882
Food Processing - 1.76%
ConAgra, Inc., 7.40% due 09/15/04........................ $ 250,000 267,398
Foreign Government - 1.15%
Treasury Corp. of Victoria, 9% due 09/04/02.............. $ 228,000 174,902
Gaming - 0.83%
Circus Circus Enterprises, 6.75% due 07/15/03............ $ 125,000 125,915
Motor Vehicles & Equipment - .64%
General Motors Acceptance Corp., 5.50% due 12/15/01...... $ 100,000 96,575
Oil and Gas - 2.36%
Coastal Corp., 9.75% due 08/01/03........................ $ 300,000 358,317
Other Utilities - 2.25%
Enron Corp., 9.875% due 06/15/03......................... $ 125,000 151,311
Enron Corp., 7.625% due 09/10/04......................... $ 175,000 190,738
Printing, Publishing & Allied Products - .55%
Time Warner, Inc., 7.95% due 02/01/00.................... $ 80,000 84,334
Telecommunications - 1.07%
Tele-Communications, Inc., 7.25% due 08/01/05............ $ 160,000 162,139
------------
Total Corporate Bonds (cost: $2,067,586) 2,140,815
------------
UNITED STATES TREASURY NOTES - 11.14%
7.625% due 04/30/96....................................... $ 375,000 377,812
7.50% due 12/31/96........................................ $ 940,000 960,558
5.625% due 10/31/97....................................... $ 350,000 352,569
------------
Total United States Treasury Notes (cost: $1,674,196) 1,690,939
------------
SHORT-TERM SECURITIES - 6.27%
Repurchase Agreement dated December 29, 1995 with State
Street Bank and Trust Company, effective yield of 5%, due
January 2, 1996 with respect to $950,000 United States
Treasury Notes, 6.125%, May 15, 1998, with a value of
$975,166................................................. $ 952,000 952,000
------------
Total Short-Term Securities (cost: $952,000) 952,000
------------
TOTAL SECURITIES (COST: $13,540,099) - 99.14% 15,048,963
OTHER ASSETS AND LIABILITIES, NET - 0.86% 130,195
------------
NET ASSETS - 100.00% $ 15,179,158
------------
------------
<CAPTION>
Atlas Growth and Income Fund
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
COMMON STOCKS - 74.30%
Aerospace & Defense - .48%
Boeing Co. .............................................. 6,000 $ 470,250
Apparel & Textiles - 1.27%
Authentic Fitness Corp. ................................. 11,300 234,475
Warnaco Group, Inc. CI.A................................. 40,000 1,000,000
Banks - 4.42%
Corestates Financial Corp. .............................. 30,000 1,136,250
First Bank System, Inc. ................................. 9,500 471,437
Firstar Corp. ........................................... 20,000 792,500
J.P. Morgan & Company, Inc. ............................. 15,000 1,203,750
NationsBank Corp. ....................................... 10,000 696,250
Chemicals - 2.20%
DuPont (E.I.) De Nemours & Co. .......................... 8,000 559,000
IMC Global, Inc. ........................................ 18,000 735,750
Monsanto Co. ............................................ 2,500 306,250
Morton International, Inc. .............................. 15,000 538,125
Computer Hardware - 1.73%
Bay Networks, Inc. (b)................................... 11,000 452,375
Cisco Systems, Inc. (b).................................. 16,500 1,231,312
Computer Software - 1.65%
Adobe Systems, Inc. ..................................... 10,000 620,000
Bell & Howell Holdings Co. (b)........................... 15,000 420,000
Nintendo Co., Ltd. ...................................... 7,500 570,761
Consumer Goods - .22%
Adidas AG (b)............................................ 8,000 213,000
Drugs & Health Care - 6.52%
American Home Products Corp. ............................ 5,500 533,500
Amgen, Inc. (b).......................................... 18,000 1,068,750
Astra AB-A............................................... 33,700 1,347,548
Genentech, Inc. (b)...................................... 15,000 795,000
Healthsouth Corp. (b).................................... 35,000 1,019,375
Johnson & Johnson........................................ 7,000 599,375
Merck & Co., Inc. ....................................... 15,000 986,250
Electrical Equipment - 3.49%
Emerson Electric Co. .................................... 12,500 1,021,875
General Electric Co. .................................... 14,000 1,008,000
Honeywell, Inc. ......................................... 18,000 875,250
Westinghouse Electric Corp. ............................. 30,000 495,000
Electrical Utilities - 4.26%
Baltimore Gas & Electric Co. ............................ 16,000 456,000
Carolina Power & Light Co. .............................. 28,000 966,000
Detroit Edison Co. ...................................... 15,000 517,500
Houston Industries, Inc. ................................ 30,000 727,500
Southern Co. ............................................ 20,000 492,500
Unicom Corp. ............................................ 30,000 982,500
Electronics - 2.17%
General Motors Corp. Cl. H............................... 16,100 790,912
LSI Logic Corp. (b)...................................... 8,000 262,000
Motorola, Inc. .......................................... 10,000 570,000
Texas Instruments, Inc. ................................. 9,500 491,625
Energy Services - 3.09%
Dresser Industries, Inc. ................................ 30,000 731,250
Halliburton Co. ......................................... 10,000 506,250
Schlumberger, Ltd. ...................................... 13,000 900,250
Weatherford Enterra, Inc. (b)............................ 12,500 360,938
Western Atlas, Inc. (b).................................. 10,000 505,000
Financial Services - 3.06%
H&R Block, Inc. ......................................... 18,000 729,000
Household International, Inc. ........................... 12,000 709,500
MBNA Corp. .............................................. 15,000 553,125
Student Loan Marketing Association....................... 15,000 988,125
Food & Beverages - 1.41%
CPC International, Inc. ................................. 15,000 1,029,375
Quaker Oats Co. ......................................... 10,000 345,000
</TABLE>
24 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Growth and Income Fund (continued)
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
Funeral Services - 1.05%
Service Corporation International........................ 23,200 $ 1,020,800
Gas Utilities - .91%
Sonat, Inc. ............................................. 25,000 890,625
Industrial & Commercial Machines - 3.19%
InFocus Systems, Inc. (b)................................ 20,000 722,500
Lexmark International Group, Inc. (b).................... 22,500 410,625
Xerox Corp. ............................................. 14,400 1,972,800
Industrial Manufacturing - 1.10%
Tyco International, Ltd. ................................ 30,000 1,068,750
Industrial Services - .90%
Alco Standard Corp. ..................................... 18,800 857,750
Danka Business Systems ADR............................... 500 18,500
Informational Services - .67%
Dun & Bradstreet Corp. .................................. 10,000 647,500
Insurance - 1.00%
MGIC Investment Corp. ................................... 18,000 976,500
Leisure & Entertainment - 2.80%
Carnival Corp. CI.A...................................... 12,000 292,500
Regal Cinemas, Inc. (b).................................. 29,500 877,625
U.S. West Media Group, Inc. (b).......................... 32,000 608,000
The Walt Disney Co. ..................................... 16,000 944,000
Medical Products - 2.11%
Baxter International, Inc. .............................. 15,000 628,125
Guidant Corp. ........................................... 15,000 633,750
Molecular Devices Corp. (b).............................. 20,000 210,000
Spine-Tech, Inc. (b)..................................... 25,000 581,250
Metals Mining - 1.01%
Aluminum Company of America.............................. 13,000 687,375
Newmont Mining Corp. .................................... 6,500 294,125
Motor Vehicles - .81%
Chrysler Corp. .......................................... 10,000 553,750
General Motors Corp. .................................... 4,500 237,938
Office Supplies - .93%
U.S. Office Products Co. (b)............................. 40,000 910,000
Oil & Gas - 5.44%
Apache Corp. ............................................ 25,000 737,500
Atlantic Richfield Co. LYONS............................. 5,000 553,750
Kerr-McGee Corp. ........................................ 8,500 539,750
Occidental Petroleum Corp. .............................. 35,000 748,125
Royal Dutch Petroleum Co. ADR............................ 5,000 705,625
Sun Co., Inc. ........................................... 25,000 684,375
Tenneco, Inc. ........................................... 20,000 992,500
Union Pacific Resources Group, Inc. ..................... 13,200 334,950
Paper & Forest Products - .68%
Rayonier, Inc. .......................................... 7,000 233,625
Weyerhaeuser Co. ........................................ 10,000 432,500
Photographic Equipment & Supplies - .93%
Eastman Kodak Co. ....................................... 13,500 904,500
Railroad Transportation - .56%
Burlington Northern Santa Fe............................. 7,000 546,000
Real Estate - .27%
Clayton Homes, Inc. ..................................... 12,500 267,188
Restaurants - 2.51%
Landry's Seafood Restaurants, Inc. (b)................... 20,000 341,250
McDonald's Corp. ........................................ 30,000 1,353,750
Wendy's International, Inc. ............................. 35,000 743,750
Retail Trade - 4.99%
CompUSA, Inc. (b)........................................ 16,000 498,000
General Nutrition Companies, Inc. (b).................... 22,000 506,000
Kohl's Corp. (b)......................................... 8,500 446,250
May Department Stores Co. ............................... 10,000 422,500
Nine West Group, Inc. (b)................................ 20,000 750,000
OfficeMax, Inc. (b)...................................... 17,000 380,375
Revco D.S., Inc. (b)..................................... 12,500 353,125
<CAPTION>
Atlas Growth and Income Fund (continued)
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
Sears Roebuck & Co. ..................................... 13,000 $ 507,000
The Men's Wearhouse, Inc. (b)............................ 35,250 907,688
Walgreen Co. ............................................ 3,000 89,625
Telecommunications - 6.47%
AT&T Corp. .............................................. 19,000 1,230,250
Bell Atlantic Corp. ..................................... 12,000 802,500
Ericsson (LM) Telephone ADR.............................. 14,000 273,000
GTE Corp. ............................................... 20,000 880,000
Palmer Wireless, Inc. (b)................................ 17,500 385,000
TCSI Corp. (b)........................................... 26,000 481,000
U.S. West, Inc. ......................................... 22,000 786,500
WorldCom, Inc. (b)....................................... 41,300 1,455,825
------------
Total Common Stocks (cost: $60,159,477) 72,334,322
------------
CONVERTIBLE PREFERRED STOCKS - 6.45%
Airlines - .31%
Delta Airlines, Inc., Series C........................... 5,000 296,875
Computer Services - .96%
General Motors Corp., Series C........................... 12,800 937,600
Gas-Utilities - .90%
Williams Cos., Inc., Series E............................ 12,000 880,500
Insurance - .16%
Merrill Lynch & Co., Inc. ............................... 3,000 154,875
Metals Mining - 1.31%
Freeport - McMoRan Copper & Gold, Inc. .................. 30,000 817,500
Reynolds Metals Co. PRIDES............................... 9,000 455,625
Oil & Gas - 1.30%
Atlantic Richfield Co. LYONS............................. 22,000 517,000
Occidental Petroleum Corp. .............................. 12,000 745,500
Oil Drilling - .58%
Noble Drilling Corp. .................................... 22,000 566,500
Telecommunications - .93%
LCI International, Inc. ................................. 17,000 909,500
------------
Total Convertible Preferred Stocks (cost: $4,999,796) 6,281,475
------------
CONVERTIBLE BONDS - 1.66%
Industrial- 1.66%
Staples, Inc., 4.50% due 10/01/00 (a).................... $ 500,000 497,500
Thermo Electron Corp., 4.25% due 01/01/03 (a)............ $ 500,000 541,250
United States Filter Corp., 6% due 09/15/05 (a).......... $ 500,000 575,000
------------
Total Convertible Bonds (cost: $1,502,722) 1,613,750
------------
SHORT-TERM SECURITIES - 17.81%
Repurchase Agreement dated December 29, 1995 with State
Street Bank and Trust Company, effective yield of 5%, due
January 2, 1996 with respect to $17,220,000 United States
Treasury Notes, 6.125%, May 15, 1998 with a value of
$17,676,164.............................................. $17,338,000 17,338,000
------------
Total Short-Term Securities (cost: $17,338,000) 17,338,000
------------
TOTAL SECURITIES (COST: $83,999,995) - 100.22% 97,567,547
OTHER ASSETS AND LIABILITIES, NET - (.22)% (214,432)
------------
NET ASSETS - 100.00% $ 97,353,115
------------
------------
</TABLE>
25
<PAGE>
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Atlas Strategic Growth Fund
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
COMMON STOCKS - 76.04%
Advertising Services - .81%
Interpublic Group of Companies, Inc. .................... 2,700 $ 117,112
Aerospace & Defense - 1.04%
AlliedSignal, Inc. ...................................... 3,200 152,000
Airlines - 1.52%
Delta Airlines, Inc. .................................... 3,000 221,625
Banks - 10.54%
Banc One Corp. .......................................... 5,900 222,725
BankAmerica Corp. ....................................... 3,500 226,625
Bankers Trust New York Corp. ............................ 3,400 226,100
Barnett Banks, Inc. ..................................... 3,700 218,300
First Bank System, Inc. ................................. 4,000 198,500
NationsBank Corp. ....................................... 3,100 215,837
Suntrust Banks, Inc. .................................... 3,300 226,050
Chemicals & Allied Products - 3.96%
Great Lakes Chemical Corp. .............................. 3,100 223,200
Morton International, Inc. .............................. 6,000 215,250
PPG Industries, Inc. .................................... 3,000 137,250
Computer Hardware - 4.56%
Compaq Computer Corp. (b)................................ 4,500 216,000
International Business Machines Corp. ................... 2,300 211,025
Sun Microsystems, Inc. (b)............................... 5,200 237,250
Computer Software - 5.43%
Automatic Data Processing, Inc. ......................... 2,600 193,050
Computer Associates International, Inc. ................. 2,850 162,094
Microsoft Corp. (b)...................................... 2,600 228,150
Oracle Systems Corp. (b)................................. 4,900 207,637
Consumer Goods & Services - 1.48%
Procter & Gamble Co. .................................... 2,600 215,800
Drugs & Health Care - 8.67%
Abbott Laboratories...................................... 4,400 183,700
Johnson & Johnson........................................ 2,600 222,625
Medtronic, Inc. ......................................... 4,200 234,675
Pfizer, Inc. ............................................ 3,800 239,400
Schering-Plough Corp. ................................... 3,700 202,575
Stryker Corp. ........................................... 3,400 178,500
Electrical Equipment - 1.04%
General Electric Co. .................................... 2,100 151,200
Electronics - 6.02%
Avnet, Inc. ............................................. 4,700 210,325
Intel Corp. ............................................. 2,400 136,200
Molex, Inc. ............................................. 6,000 190,500
Motorola, Inc. .......................................... 2,500 142,500
Texas Instruments, Inc. ................................. 3,800 196,650
Energy Services - .48%
Schlumberger, Ltd. ...................................... 1,000 69,250
Financial Services - 1.71%
Federal National Mortgage Association.................... 2,000 248,250
Food & Beverages - 4.32%
The Coca-Cola Co. ....................................... 2,800 207,900
Pepsico, Inc. ........................................... 4,000 223,500
Sara Lee Corp. .......................................... 6,200 197,625
<CAPTION>
Atlas Strategic Growth Fund (continued)
- ---------------------------------------------------------------------------------------
shares or value (note
face amount 1)
----------- ------------
<S> <C> <C>
General Building Contractors - 1.59%
Fluor Corp. ............................................. 3,500 $ 231,000
General Merchandise Stores - .52%
Wal Mart Stores, Inc. ................................... 3,400 76,075
Industrial & Commercial Machines - 2.94%
Hewlett-Packard Co. ..................................... 2,700 226,125
Parker Hannifin Corp. ................................... 5,900 202,075
Industrial Manufacturing - 2.17%
Dover Corp. ............................................. 5,700 210,188
Trinova Corp. ........................................... 100 2,863
Tyco International, Ltd. ................................ 2,900 103,313
Leisure Time - 1.42%
The Walt Disney Co. ..................................... 3,500 206,500
Metals Mining - 1.56%
Reynolds Metals Co. ..................................... 4,000 226,500
Machine Tools & Equipment - .31%
Snap-On, Inc. ........................................... 1,000 45,250
Oil & Gas - 4.20%
British Petroleum Co., Plc. ADR.......................... 2,300 234,888
Exxon Corp. ............................................. 2,600 208,325
Mobil Corp. ............................................. 1,500 168,000
Oil & Gas Services - 1.83%
Baker Hughes, Inc. ...................................... 10,900 265,687
Paper & Forest Products - 2.47%
Georgia Pacific Corp. ................................... 2,400 164,700
Weyerhaeuser Co. ........................................ 4,500 194,625
Railroad Transportation - 1.50%
Burlington Northern Santa Fe............................. 2,800 218,400
Restaurants - 1.55%
McDonald's Corp. ........................................ 5,000 225,625
Telecommunications - 2.40%
AT&T Corp. .............................................. 2,200 142,450
Sprint Corp. ............................................ 5,200 207,350
------------
Total Common Stocks (cost: $9,108,595) 11,066,894
------------
SHORT-TERM SECURITIES - 23.81%
Repurchase Agreement dated December 29, 1995 with State
Street Bank and Trust Company, effective yield of 5%, due
January 2, 1996 with respect to $3,445,000 United States
Treasury Notes, 6.125%, May 15, 1998, with a value of
$3,536,267............................................... $ 3,466,000 3,466,000
------------
Total Short-Term Securities (cost: $3,466,000) 3,466,000
------------
TOTAL SECURITITES (COST: $12,574,595) - 99.85% 14,532,894
OTHER ASSETS AND LIABILITIES, NET - 0.15% 22,451
------------
NET ASSETS - 100.00% $ 14,555,345
------------
------------
</TABLE>
* Variable rate demand notes are tax-exempt obligations which contain a
floating or variable interest rate adjustment formula (computed daily or
weekly) and an unconditional right of demand to receive payment of the unpaid
principal balance plus accrued interest upon short notice prior to specified
dates. The interest rate may change on specified dates in relationship with
changes in a designated rate (such as the prime interest or U.S. Treasury
Bill rates).
(a) Restricted securities which are exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At the
end of the period the value of these securities amounted to $956,875 or
6.30% of net assets in the Balanced Fund and $1,613,750 or 1.66% of net
assets in the Growth and Income Fund.
(b) Non-income producing security.
ACES = Automatic Common Exchange Securities
AMBAC = AMBAC Indemnity Corporation
AMT = Alternative Minimum Tax
BIG = Bond Investors Guarantee
COP = Certificate of Participation
DECS = Debt Exchangeable for Common Stock
ELKS = Equity-Linked Security Valuation
FGIC = Financial Guarantee Insurance Corporation
LYONS = Liquid Yield Option Notes
MBIA = Municipal Bond Investors Assurance
MIPS = Monthly Income Preferred Shares
PRIDES = Provisionally Redeemable Income Debt Exchangeable for Stock
26 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
(This page has been left blank intentionally.)
27
<PAGE>
Statements of Assets and Liabilities DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds Bond Funds
------------------------------------- ------------------------------------
U.S. California National California Insured National Insured
Treasury Municipal Municipal Intermediate Intermediate
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at
identified cost............. $51,323,399 $39,122,417 $ 8,135,866 $ 23,910,329 $ 15,177,710
----------- ----------- ----------- ------------------ ----------------
----------- ----------- ----------- ------------------ ----------------
Investment in securities, at
value....................... $51,323,399 $39,122,417 $ 8,135,866 $ 24,645,051 $ 15,717,529
Cash........................ 7,066 15,358 26,162 30,314 51,410
Receivables for:
Sales of investments...... 0 0 0 0 111,024
Sales of Fund's shares.... 69,334 1,880 1,730 2,129 0
Accrued interest and
dividends................. 227,755 353,591 72,029 444,978 215,163
Other..................... 0 1,150 736 0 0
Unamortized organization
costs (Note 2).............. 2,513 0 0 2,513 2,513
----------- ----------- ----------- ------------------ ----------------
Total assets................ 51,630,067 39,494,396 8,236,523 25,124,985 16,097,639
----------- ----------- ----------- ------------------ ----------------
LIABILITIES:
Payables for:
Purchases of
investments............... 0 0 364,432 0 0
Redemptions of Fund's
shares.................... 96,661 27,784 6,358 55,555 0
Dividends................. 17,906 5,970 1,114 26,782 21,087
Repurchases of investments
under dollar roll
agreements................ 0 0 0 0 0
Accrued expenses.......... 17,790 21,351 4,694 16,832 10,378
Other liabilities......... 0 0 0 319 3
----------- ----------- ----------- ------------------ ----------------
Total liabilities........... 132,357 55,105 376,598 99,488 31,468
----------- ----------- ----------- ------------------ ----------------
NET ASSETS.................... $51,497,710 $39,439,291 $ 7,859,925 $ 25,025,497 $ 16,066,171
----------- ----------- ----------- ------------------ ----------------
----------- ----------- ----------- ------------------ ----------------
NET ASSETS CONSIST OF:
Unrealized appreciation
(depreciation) (Note 3)..... $ 0 $ 0 $ 0 $ 734,722 $ 539,819
Accumulated net realized
gain (loss)................. 0 0 0 (595,780) (406,814)
Undistributed net investment
income...................... 0 0 0 0 0
Paid in capital............. 51,497,710 39,439,291 7,859,925 24,886,555 15,933,166
----------- ----------- ----------- ------------------ ----------------
NET ASSETS.................... $51,497,710 $39,439,291 $ 7,859,925 $ 25,025,497 $ 16,066,171
----------- ----------- ----------- ------------------ ----------------
----------- ----------- ----------- ------------------ ----------------
NET ASSET VALUE PER SHARE:
Class A
Net Assets................ $51,384,400 $39,439,291 $ 7,859,925 $ 24,582,031 $ 15,781,878
Shares outstanding........ 51,384,400 39,439,291 7,859,925 2,369,740 1,522,018
Net asset value per
share..................... $ 1.00 $ 1.00 $ 1.00 $ 10.37 $ 10.37
Maximum offering price per
share (net asset value
plus sales charge of 3.0%
for Bond and Stock
Funds).................... $ 1.00 $ 1.00 $ 1.00 $ 10.69 $ 10.69
Class B
Net Assets................ $ 113,310 NA NA $ 443,466 $ 284,293
Shares outstanding........ 113,310 NA NA 42,779 27,398
Net asset value per share
and maximum offering
price..................... $ 1.00 NA NA $ 10.37 $ 10.38
CAPITAL SHARES AUTHORIZED:.... 75,000,000 350,000,000 130,000,000 25,000,000 25,000,000
----------- ----------- ----------- ------------------ ----------------
----------- ----------- ----------- ------------------ ----------------
</TABLE>
28 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
----------------------------------------------------------- -------------------------------------
U.S. Government California National U.S. Government
Intermediate Municipal Municipal and Mortgage Balanced Growth and Strategic
Fund Bond Fund Bond Fund Securities Fund Fund Income Fund Growth Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at
identified cost............. $ 8,494,409 $171,006,002 $53,038,386 $ 263,548,924 $13,540,099 $83,999,995 $12,574,595
--------------- ------------ ----------- --------------- ----------- ----------- -----------
--------------- ------------ ----------- --------------- ----------- ----------- -----------
Investment in securities, at
value....................... $ 8,546,604 $184,645,558 $56,978,223 $ 269,808,456 $15,048,963 $97,567,547 $14,532,894
Cash........................ 5,708 29,673 31,680 74,171 541 27 592
Receivables for:
Sales of investments...... 0 0 0 15,044,064 0 3,984,828 0
Sales of Fund's shares.... 0 57,162 0 95,913 50,063 296,453 69,508
Accrued interest and
dividends................. 100,275 3,252,018 817,410 1,662,829 160,665 216,559 20,348
Other..................... 0 0 8 0 41 517 0
Unamortized organization
costs (Note 2).............. 2,513 2,513 2,513 2,513 2,513 2,513 2,513
--------------- ------------ ----------- --------------- ----------- ----------- -----------
Total assets................ 8,655,100 187,986,924 57,829,834 286,687,946 15,262,786 102,068,444 14,625,855
--------------- ------------ ----------- --------------- ----------- ----------- -----------
LIABILITIES:
Payables for:
Purchases of
investments............... 0 0 3,268,729 19,174,948 0 4,367,033 0
Redemptions of Fund's
shares.................... 500 112,860 27,717 104,956 22,291 23,610 0
Dividends................. 15,099 213,589 43,536 532,161 44,620 192,346 47,952
Repurchases of investments
under dollar roll
agreements................ 0 0 0 7,013,582 0 0 0
Accrued expenses.......... 3,169 215,297 51,780 313,613 15,855 132,327 22,408
Other liabilities......... 1,162 592 13 135,387 862 13 150
--------------- ------------ ----------- --------------- ----------- ----------- -----------
Total liabilities........... 19,930 542,338 3,391,775 27,274,647 83,628 4,715,329 70,510
--------------- ------------ ----------- --------------- ----------- ----------- -----------
NET ASSETS.................... $ 8,635,170 $187,444,586 $54,438,059 $ 259,413,299 $15,179,158 $97,353,115 $14,555,345
--------------- ------------ ----------- --------------- ----------- ----------- -----------
--------------- ------------ ----------- --------------- ----------- ----------- -----------
NET ASSETS CONSIST OF:
Unrealized appreciation
(depreciation) (Note 3)..... $ 52,195 $ 13,639,556 $ 3,939,837 $ 6,259,532 $ 1,509,486 $13,567,856 $ 1,958,299
Accumulated net realized
gain (loss)................. (266,838) (1,923,152) (265,010) (12,846,484) (3,125) (23,813) (1,992)
Undistributed net investment
income...................... 0 0 0 0 (5) (13) (3)
Paid in capital............. 8,849,813 175,728,182 50,763,232 266,000,251 13,672,802 83,809,085 12,599,041
--------------- ------------ ----------- --------------- ----------- ----------- -----------
NET ASSETS.................... $ 8,635,170 $187,444,586 $54,438,059 $ 259,413,299 $15,179,158 $97,353,115 $14,555,345
--------------- ------------ ----------- --------------- ----------- ----------- -----------
--------------- ------------ ----------- --------------- ----------- ----------- -----------
NET ASSET VALUE PER SHARE:
Class A
Net Assets................ $ 8,208,943 $184,282,351 $53,387,391 $ 255,614,578 $13,546,901 $93,061,308 $12,223,617
Shares outstanding........ 840,832 16,372,283 4,687,590 24,823,053 1,210,167 5,849,464 962,879
Net asset value per
share..................... $ 9.76 $ 11.26 $ 11.39 $ 10.30 $ 11.19 $ 15.91 $ 12.69
Maximum offering price per
share (net asset value
plus sales charge of 3.0%
for Bond and Stock
Funds).................... $ 10.06 $ 11.61 $ 11.74 $ 10.62 $ 11.54 $ 16.40 $ 13.08
Class B
Net Assets................ $ 426,227 $ 3,162,235 $ 1,050,668 $ 3,798,721 $ 1,632,257 $ 4,291,807 $ 2,331,728
Shares outstanding........ 43,656 280,796 92,231 368,874 146,081 270,154 184,659
Net asset value per share
and maximum offering
price..................... $ 9.76 $ 11.26 $ 11.39 $ 10.30 $ 11.17 $ 15.89 $ 12.63
CAPITAL SHARES AUTHORIZED:.... 25,000,000 50,000,000 20,000,000 50,000,000 20,000,000 20,000,000 10,000,000
--------------- ------------ ----------- --------------- ----------- ----------- -----------
--------------- ------------ ----------- --------------- ----------- ----------- -----------
</TABLE>
29
<PAGE>
Statements of Operations FOR THE YEAR ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds Bond Funds
------------------------------------- ------------------------------------
California National California Insured National Insured
U.S. Treasury Municipal Municipal Intermediate Intermediate
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest.................. $ 2,140,697 $1,549,409 $ 347,378 $ 1,158,696 $ 788,140
Dividends................. 0 0 0 0 0
------------- ---------- ---------- ------------------ ----------------
Total income................ 2,140,697 1,549,409 347,378 1,158,696 788,140
------------- ---------- ---------- ------------------ ----------------
Expenses:
Management fees (Note
6)........................ 190,019 201,592 43,929 136,276 89,732
12b-1 fees: (Note 6)
Class A................. 94,899 100,796 21,964 61,087 40,217
Class B................. 333 0 0 2,570 1,711
Transfer agency fees and
expenses.................. 67,113 37,938 12,120 35,888 28,923
Custodian fees and
expenses.................. 35,151 32,631 17,421 37,526 32,680
Directors' fees........... 1,988 2,121 463 1,302 858
Registration fees......... 677 701 153 598 398
Accounting and legal
fees...................... 11,122 10,538 9,899 10,857 10,686
Printing and postage...... 4,226 2,637 1,671 2,970 2,276
Other..................... 9,260 14,523 4,382 3,196 1,862
Waiver of management fees
(Note 6).................. (60,257) (33,130) (24,345) (21,712) (26,069)
Waiver of 12b-1 fees:
(Note 6)
Class A................. (94,899) (100,796) (21,964) (61,087) (40,217)
Class B................. (53) 0 0 (784) (525)
Expense reimbursement (Note
6).......................... (15,470) 0 0 (15,590) (15,558)
------------- ---------- ---------- ------------------ ----------------
Total expenses.............. 244,109 269,551 65,693 193,097 126,974
------------- ---------- ---------- ------------------ ----------------
Net investment income....... 1,896,588 1,279,858 281,685 965,599 661,166
------------- ---------- ---------- ------------------ ----------------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS
AND FOREIGN CURRENCY:
Realized gain (loss):
Proceeds from sales....... 164,156,495 0 0 14,150,473 14,521,974
Cost of securities sold... (164,150,902) 0 0 (14,370,295) (14,665,568)
------------- ---------- ---------- ------------------ ----------------
Net realized gain (loss).... 5,593 0 0 (219,822) (143,594)
------------- ---------- ---------- ------------------ ----------------
Unrealized appreciation
(depreciation):
Beginning of period....... 0 0 0 (1,274,352) (796,576)
End of period............. 0 0 0 734,722 539,819
------------- ---------- ---------- ------------------ ----------------
Unrealized appreciation
(depreciation).............. 0 0 0 2,009,074 1,336,395
------------- ---------- ---------- ------------------ ----------------
Net realized gain (loss) and
unrealized appreciation
(depreciation) of
investments and foreign
currency.................... 5,593 0 0 1,789,252 1,192,801
------------- ---------- ---------- ------------------ ----------------
Net increase (decrease) in
net assets resulting from
operations.................. $ 1,902,181 $1,279,858 $ 281,685 $ 2,754,851 $ 1,853,967
------------- ---------- ---------- ------------------ ----------------
------------- ---------- ---------- ------------------ ----------------
</TABLE>
30 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
------------------------------------------------------------ -------------------------------------
U.S. Government California National U.S. Government
Intermediate Municipal Municipal and Mortgage Balanced Growth and Strategic
Fund Bond Fund Bond Fund Securities Fund Fund Income Fund Growth Fund
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Interest.................. $ 547,614 $ 10,788,436 $ 3,008,121 $ 19,997,654 $ 354,720 $ 616,083 $ 119,740
Dividends................. 0 0 0 0 321,656 1,437,653 134,389
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Total income................ 547,614 10,788,436 3,008,121 19,997,654 676,376 2,053,736 254,129
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Expenses:
Management fees (Note
6)........................ 52,613 1,005,066 290,105 1,388,324 84,176 574,103 67,004
12b-1 fees: (Note 6)
Class A................. 22,893 451,787 130,092 625,491 27,742 198,745 21,545
Class B................. 3,066 16,040 5,321 16,697 6,961 18,875 7,156
Transfer agency fees and
expenses.................. 27,938 131,103 59,390 281,769 30,632 113,249 27,948
Custodian fees and
expenses.................. 22,418 103,040 52,971 242,759 37,085 76,823 36,877
Directors' fees........... 503 9,603 2,772 13,264 630 4,298 499
Registration fees......... 376 4,215 1,255 5,448 654 2,603 574
Accounting and legal
fees...................... 10,549 14,057 11,424 17,479 10,598 12,012 10,547
Printing and postage...... 2,000 25,255 13,288 31,024 3,579 27,965 3,088
Other..................... 1,179 47,782 20,872 28,664 8,771 39,599 5,922
Waiver of management fees
(Note 6).................. (36,251) (3,596) (248) 0 (1,985) 0 0
Waiver of 12b-1 fees:
(Note 6)
Class A................. (22,893) (81,696) (87,026) (39,493) (10,629) (23,123) (5,893)
Class B................. (904) (346) (922) (25) (708) (37) (70)
Expense reimbursement (Note
6).......................... (15,615) (16,406) (15,517) (16,520) (15,000) (15,925) (14,898)
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Total expenses.............. 67,872 1,705,904 483,777 2,594,881 182,506 1,029,187 160,299
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Net investment income....... 479,742 9,082,532 2,524,344 17,402,773 493,870 1,024,549 93,830
--------------- ------------ ------------ --------------- ----------- ----------- -----------
REALIZED GAIN (LOSS) AND
UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS
AND FOREIGN CURRENCY:
Realized gain (loss):
Proceeds from sales....... 9,564,306 45,903,377 27,483,113 153,052,072 2,817,137 103,026,364 5,436,568
Cost of securities sold... (9,571,045) (44,580,673) (26,965,587) (156,677,434) (2,699,712) (92,724,369) (5,017,789)
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Net realized gain (loss).... (6,739) 1,322,704 517,526 (3,625,362) 117,425 10,301,995 418,779
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Unrealized appreciation
(depreciation):
Beginning of period....... (400,713) (881,614) (252,141) (16,356,760) (640,756) 1,874,266 201,552
End of period............. 52,195 13,639,556 3,939,837 6,259,532 1,509,486 13,567,856 1,958,299
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Unrealized appreciation
(depreciation).............. 452,908 14,521,170 4,191,978 22,616,292 2,150,242 11,693,590 1,756,747
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Net realized gain (loss) and
unrealized appreciation
(depreciation) of
investments and foreign
currency.................... 446,169 15,843,874 4,709,504 18,990,930 2,267,667 21,995,585 2,175,526
--------------- ------------ ------------ --------------- ----------- ----------- -----------
Net increase (decrease) in
net assets resulting from
operations.................. $ 925,911 $ 24,926,406 $ 7,233,848 $ 36,393,703 $ 2,761,537 $23,020,134 $ 2,269,356
--------------- ------------ ------------ --------------- ----------- ----------- -----------
--------------- ------------ ------------ --------------- ----------- ----------- -----------
</TABLE>
31
<PAGE>
Statements of Changes in Net Assets FOR THE YEARS ENDED DECEMBER 31, 1995 AND
1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
------------------------------------------------------
California Municipal Money
U.S. Treasury Money Fund Fund
-------------------------- --------------------------
1995 1994 1995 1994
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 1,896,588 $ 807,728 $ 1,279,858 $ 1,106,018
Net realized gain (loss) of
investments and foreign
currency.................... 5,593 (1,850) 0 0
Net unrealized appreciation
(depreciation) of
investments and foreign
currency.................... 0 0 0 0
------------ ------------ ------------ ------------
Net increase (decrease) in
net assets resulting from
operations.................. 1,902,181 805,878 1,279,858 1,106,018
------------ ------------ ------------ ------------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A................... (1,894,657) (807,502) (1,279,858) (1,106,018)
Class B................... (1,931) (226) NA NA
Distributions from net
realized gain of
investments:
Class A................... (3,735) 0 0 0
Class B................... (8) 0 NA NA
Distributions in excess of
net realized gain of
investments:
Class A................... 0 0 0 0
Class B................... 0 0 NA NA
------------ ------------ ------------ ------------
Total distributions:
Class A................... (1,898,392) (807,502) (1,279,858) (1,106,018)
Class B................... (1,939) (226) NA NA
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
(NOTE 4)
Proceeds from shares sold:
Class A................... 62,421,371 47,867,065 21,048,024 32,186,096
Class B................... 113,548 57,534 NA NA
Proceeds from shares issued
in reinvestment of net
investment income dividends
and capital gain dividends:
Class A................... 1,732,544 711,211 1,206,743 1,040,696
Class B................... 1,823 181 NA NA
Cost of shares redeemed:
Class A................... (46,219,562) (29,295,814) (25,794,809) (36,030,977)
Class B................... (29,910) (29,781) NA NA
------------ ------------ ------------ ------------
Net increase (decrease) in
net assets resulting from
capital share transactions:
Class A................... 17,934,353 19,282,462 (3,540,042) (2,804,185)
Class B................... 85,461 27,934 NA NA
------------ ------------ ------------ ------------
Net increase (decrease) in
net assets.................. 18,021,664 19,308,546 (3,540,042) (2,804,185)
NET ASSETS:
Beginning of period......... 33,476,046 14,167,500 42,979,333 45,783,518
------------ ------------ ------------ ------------
End of period............... $ 51,497,710 $ 33,476,046 $ 39,439,291 $ 42,979,333
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
32 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
------------------------------------------------------------------------------------------------------
California Insured National Insured
National Municipal Money Intermediate Intermediate U.S. Government
Fund Municipal Fund Municipal Fund Intermediate Fund
------------------------ ------------------------ ------------------------ ------------------------
1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................. $ 281,685 $ 261,156 $ 965,599 $ 1,079,692 $ 661,166 $ 697,904 $ 479,742 $ 493,219
Net realized gain
(loss) of investments
and foreign currency... 0 0 (219,822) (359,219) (143,594) (263,220) (6,739) (259,889)
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency............... 0 0 2,009,074 (1,797,604) 1,336,395 (1,123,378) 452,908 (473,723)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 281,685 261,156 2,754,851 (1,077,131) 1,853,967 (688,694) 925,911 (240,393)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A.............. (281,685) (261,156) (954,051) (1,077,743) (653,092) (695,939) (461,230) (490,112)
Class B.............. NA NA (11,548) (1,949) (8,074) (1,965) (18,512) (3,107)
Distributions from net
realized gain of
investments:
Class A.............. 0 0 0 0 0 0 0 0
Class B.............. NA NA 0 0 0 0 0 0
Distributions in excess
of net realized gain of
investments:
Class A.............. 0 0 0 0 0 0 0 0
Class B.............. NA NA 0 0 0 0 0 0
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total distributions:
Class A.............. (281,685) (261,156) (954,051) (1,077,743) (653,092) (695,939) (461,230) (490,112)
Class B.............. NA NA (11,548) (1,949) (8,074) (1,965) (18,512) (3,107)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A.............. 5,489,510 11,299,111 1,329,591 7,631,939 501,016 4,642,164 741,765 4,760,171
Class B.............. NA NA 184,500 229,376 89,519 215,390 157,995 326,509
Proceeds from shares
issued in reinvestment
of net investment
income dividends and
capital gain dividends:
Class A.............. 264,276 245,124 634,165 754,869 389,037 473,480 284,999 327,718
Class B.............. NA NA 9,725 1,519 7,792 1,872 16,935 2,506
Cost of shares
redeemed:
Class A.............. (8,003,464) (10,858,419) (2,782,394) (6,835,673) (2,509,192) (3,044,599) (2,944,712) (3,588,089)
Class B.............. NA NA 0 0 (14,830) (26,595) (87,780) (4,920)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A.............. (2,249,678) 685,816 (818,638) 1,551,135 (1,619,139) 2,071,045 (1,917,948) 1,499,800
Class B.............. NA NA 194,225 230,895 82,481 190,667 87,150 324,095
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets.......... (2,249,678) 685,816 1,164,839 (374,793) (343,857) 875,114 (1,384,629) 1,090,283
NET ASSETS:
Beginning of period.... 10,109,603 9,423,787 23,860,658 24,235,451 16,410,028 15,534,914 10,019,799 8,929,516
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
End of period.......... $ 7,859,925 $10,109,603 $25,025,497 $23,860,658 $16,066,171 $16,410,028 $ 8,635,170 $10,019,799
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
33
<PAGE>
Statements of Changes in Net Assets FOR THE YEARS ENDED DECEMBER 31, 1995 AND
1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
--------------------------------------------------------
California Municipal Bond National Municipal Bond
Fund Fund
---------------------------- --------------------------
1995 1994 1995 1994
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 9,082,532 $ 10,188,520 $ 2,524,344 $ 2,940,786
Net realized gain (loss) of
investments and foreign
currency.................... 1,322,704 (3,214,331) 517,526 (782,253)
Net unrealized appreciation
(depreciation) of
investments and foreign
currency.................... 14,521,170 (18,724,053) 4,191,978 (5,439,579)
------------- ------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations.................. 24,926,406 (11,749,864) 7,233,848 (3,281,046)
------------- ------------- ------------ ------------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A................... (8,987,933) (10,165,682) (2,494,396) (2,936,147)
Class B................... (94,599) (22,838) (29,948) (4,639)
Distributions from net
realized gain of
investments:
Class A................... 0 0 0 0
Class B................... 0 0 0 0
Distributions in excess of
net realized gain of
investments:
Class A................... 0 0 0 0
Class B................... 0 0 0 0
------------- ------------- ------------ ------------
Total distributions:
Class A................... (8,987,933) (10,165,682) (2,494,396) (2,936,147)
Class B................... (94,599) (22,838) (29,948) (4,639)
------------- ------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
(NOTE 4)
Proceeds from shares sold:
Class A................... 12,716,142 27,595,755 3,432,223 8,306,122
Class B................... 1,615,527 1,503,004 663,083 356,250
Proceeds from shares issued
in reinvestment of net
investment income dividends
and capital gain dividends:
Class A................... 6,371,160 7,428,502 1,951,594 2,294,522
Class B................... 73,646 16,608 26,570 3,503
Cost of shares redeemed:
Class A................... (22,241,844) (38,767,686) (6,683,552) (11,939,876)
Class B................... (117,765) (47,912) (40,486) (9,657)
------------- ------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
capital share transactions:
Class A................... (3,154,542) (3,743,429) (1,299,735) (1,339,232)
Class B................... 1,571,408 1,471,700 649,167 350,096
------------- ------------- ------------ ------------
Net increase (decrease) in
net assets.................. 14,260,740 (24,210,113) 4,058,936 (7,210,968)
NET ASSETS:
Beginning of period......... 173,183,846 197,393,959 50,379,123 57,590,091
------------- ------------- ------------ ------------
End of period............... $ 187,444,586 $ 173,183,846 $ 54,438,059 $ 50,379,123
------------- ------------- ------------ ------------
------------- ------------- ------------ ------------
</TABLE>
34 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
-------------------------------------------------------------------------------------------------------
U.S. Government and
Mortgage
Securities Fund Balanced Fund Growth and Income Fund Strategic Growth Fund
-------------------------- ------------------------ ------------------------ -----------------------
1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income................. $ 17,402,773 $ 20,080,730 $ 493,870 $ 431,660 $ 1,024,549 $ 829,455 $ 93,830 $ 74,838
Net realized gain
(loss) of investments
and foreign currency... (3,625,362) (8,886,830) 117,425 (46,665) 10,301,995 709,785 418,779 (257,361)
Net unrealized
appreciation
(depreciation) of
investments and foreign
currency............... 22,616,292 (22,001,433) 2,150,242 (589,903) 11,693,590 (2,488,811) 1,756,747 157,078
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from operations........ 36,393,703 (10,807,533) 2,761,537 (204,908) 23,020,134 (949,571) 2,269,356 (25,445)
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
DISTRIBUTIONS PAID TO
SHAREHOLDERS:
Dividends from net
investment income:
Class A.............. (17,261,789) (20,054,165) (458,093) (420,711) (999,924) (824,301) (82,228) (71,792)
Class B.............. (140,984) (26,565) (35,786) (10,912) (24,622) (4,973) (11,605) (3,028)
Distributions from net
realized gain of
investments:
Class A.............. 0 0 (65,959) 0 (9,735,132) (624,363) (128,423) 0
Class B.............. 0 0 (7,926) 0 (447,924) (12,956) (24,463) 0
Distributions in excess
of net realized gain of
investments:
Class A.............. 0 0 0 0 0 (139,854) (1,673) 0
Class B.............. 0 0 0 0 0 (2,898) (319) 0
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
Total distributions:
Class A.............. (17,261,789) (20,054,165) (524,052) (420,711) (10,735,056) (1,588,518) (212,324) (71,792)
Class B.............. (140,984) (26,565) (43,712) (10,912) (472,546) (20,827) (36,387) (3,028)
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
CAPITAL SHARE
TRANSACTIONS: (NOTE 4)
Proceeds from shares
sold:
Class A.............. 17,947,765 40,671,710 3,217,552 6,100,455 22,798,866 24,561,897 4,447,212 2,956,591
Class B.............. 2,210,214 1,533,603 968,596 606,608 2,339,256 1,490,912 1,845,831 344,921
Proceeds from shares
issued in reinvestment
of net investment
income dividends and
capital gain dividends:
Class A.............. 10,710,383 12,994,229 393,011 293,781 10,527,649 1,547,395 164,469 49,041
Class B.............. 105,302 20,295 40,988 10,181 470,219 20,737 36,136 3,003
Cost of shares
redeemed:
Class A.............. (37,598,231) (88,177,540) (1,756,631) (1,772,291) (21,480,206) (13,375,960) (721,926) (607,780)
Class B.............. (119,553) (76,684) (118,564) (140) (165,167) (28,403) (35,686) (14,908)
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from capital share
transactions:
Class A.............. (8,940,083) (34,511,601) 1,853,932 4,621,945 11,846,309 12,733,332 3,889,755 2,397,852
Class B.............. 2,195,963 1,477,214 891,020 616,649 2,644,308 1,483,246 1,846,281 333,016
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease)
in net assets.......... 12,246,810 (63,922,650) 4,938,725 4,602,063 26,303,149 11,657,662 7,756,681 2,630,603
NET ASSETS:
Beginning of period.... 247,166,489 311,089,139 10,240,433 5,638,370 71,049,966 59,392,304 6,798,664 4,168,061
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
End of period.......... $259,413,299 $247,166,489 $15,179,158 $10,240,433 $97,353,115 $71,049,966 $14,555,345 $6,798,664
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
------------ ------------ ----------- ----------- ----------- ----------- ----------- ----------
</TABLE>
35
<PAGE>
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Funds
---------------------------------------------------------------
U.S. Treasury Money Fund
Class A Class B
----------------------------------------- -------------------
1995(1) 1994(1) 1993(1) 1992(2) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.050 0.036 0.030 0.023 0.044 0.018
Net gain or loss on securities (both
realized and unrealized)................... 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- --------
Total from investment operations........... 0.050 0.036 0.030 0.023 0.044 0.018
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends (from net investment income)..... (0.050) (0.036) (0.030) (0.023) (0.044) (0.018)
Distributions (from realized capital
gains)..................................... 0.000 0.000 0.000 0.000 0.000 0.000
Distributions (in excess of realized
gains)..................................... 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- --------
Total distributions........................ (0.050) (0.036) (0.030) (0.023) (0.044) (0.018)
-------- -------- -------- -------- -------- --------
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total return(6).............................. 5.13% 3.67% 3.03% 2.32% 4.45% 3.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).......... $ 51,385 $ 33,448 $ 14,168 $ 7,632 $ 113 $ 28
Ratio of expenses to average net assets
(annualized)(7)............................ 0.64% 0.46% 0.15% 0.00% 1.24% 1.13%
Ratio of net investment income to average
net assets (annualized).................... 4.99% 3.75% 2.98% 3.32% 4.34% 3.71%
Portfolio turnover rate (Note 5)........... -- -- -- -- -- --
<CAPTION>
California Municipal Money Fund
Class A
---------------------------------------------------------------
1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(4)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income...................... 0.032 0.024 0.021 0.027 0.045 0.052
Net gain or loss on securities (both
realized and unrealized)................... 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- --------
Total from investment operations........... 0.032 0.024 0.021 0.027 0.045 0.052
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends (from net investment income)..... (0.032) (0.024) (0.021) (0.027) (0.045) (0.052)
Distributions (from realized capital
gains)..................................... 0.000 0.000 0.000 0.000 0.000 0.000
Distributions (in excess of realized
gains)..................................... 0.000 0.000 0.000 0.000 0.000 0.000
-------- -------- -------- -------- -------- --------
Total distributions........................ (0.032) (0.024) (0.021) (0.027) (0.045) (0.052)
-------- -------- -------- -------- -------- --------
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total return(6).............................. 3.22% 2.47% 2.13% 2.75% 4.61% 5.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's).......... $ 39,439 $ 42,979 $ 45,784 $ 55,890 $ 59,007 $ 20,190
Ratio of expenses to average net assets
(annualized)(7)............................ 0.67% 0.46% 0.48% 0.46% 0.00% 0.00%
Ratio of net investment income to average
net assets (annualized).................... 3.18% 2.44% 2.10% 2.73% 4.47% 5.50%
Portfolio turnover rate (Note 5)........... -- -- -- -- -- --
</TABLE>
(1) For the year ended December 31.
(2) For the period May 1, 1992 (inception of operations) to December 31, 1992.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) For the period January 10, 1990 (effective date of registration) to December
31, 1990.
(5) For the period June 1, 1993 (effective date of registration) to December 31,
1993.
(6) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period.
Returns for periods less than a full year are aggregate (non-annualized)
returns.
(7) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1995 1994 1993 1992 1991 1990 1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Fund...... 1.05% 1.08% 1.10% 1.37% NA NA 3.25% 3.25%
California Municipal Money
Fund......................... 1.00% 1.00% 0.98% 1.03% 1.13% 1.50% NA NA
National Municipal Money
Fund......................... 1.29% 1.25% 1.28% 1.35% 1.51% 1.95% NA NA
California Insured
Intermediate Municipal
Fund......................... 1.11% 1.11% 1.26% NA NA NA 3.25% 3.25%
National Insured Intermediate
Municipal Fund............... 1.19% 1.19% 1.39% NA NA NA 3.25% 3.25%
</TABLE>
36 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------
National Municipal Money Fund
Class A
---------------------------------------------------------
1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(4)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income..... 0.032 0.026 0.022 0.029 0.048 0.055
Net gain or loss on
securities (both realized
and unrealized)........... 0.000 0.000 0.000 0.000 0.000 0.000
------- ------- ------- ------- ------- -------
Total from investment
operations................ 0.032 0.026 0.022 0.029 0.048 0.055
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends (from net
investment income)........ (0.032) (0.026) (0.022) (0.029) (0.048) (0.055)
Distributions (from
realized capital gains)... 0.000 0.000 0.000 0.000 0.000 0.000
Distributions (in excess
of realized gains)........ 0.000 0.000 0.000 0.000 0.000 0.000
------- ------- ------- ------- ------- -------
Total distributions....... (0.032) (0.026) (0.022) (0.029) (0.048) (0.055)
------- ------- ------- ------- ------- -------
Net asset value, end of
period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total return(6)............. 3.26% 2.60% 2.25% 2.94% 4.87% 5.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)................... $ 7,860 $10,110 $ 9,424 $ 8,139 $ 9,816 $ 4,150
Ratio of expenses to
average net assets
(annualized)(7)........... 0.75% 0.49% 0.55% 0.54% 0.00% 0.00%
Ratio of net investment
income to average net
assets (annualized)....... 3.21% 2.57% 2.23% 2.92% 4.71% 5.79%
Portfolio turnover rate
(Note 5).................. -- -- -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
Bond Funds
-------------------------------------------------------------------------------------------------
California Insured Intermediate National Insured Intermediate
Municipal Fund Municipal Fund
Class A Class B Class A Class B
--------------------------- ----------------- --------------------------- -----------------
1995(1) 1994(1) 1993(5) 1995(1) 1994(3) 1995(1) 1994(1) 1993(5) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................... $ 9.64 $ 10.48 $ 10.01 $ 9.64 $ 9.91 $ 9.64 $ 10.48 $ 10.02 $ 9.65 $ 9.91
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income..... 0.40 0.42 0.26 0.34 0.17 0.41 0.42 0.26 0.36 0.18
Net gain or loss on
securities (both realized
and unrealized)........... 0.73 (0.84) 0.47 0.73 (0.27) 0.73 (0.84) 0.46 0.73 (0.26)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment
operations................ 1.13 (0.42) 0.73 1.07 (0.10) 1.14 (0.42) 0.72 1.09 (0.08)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends (from net
investment income)........ (0.40) (0.42) (0.26) (0.34) (0.17) (0.41) (0.42) (0.26) (0.36) (0.18)
Distributions (from
realized capital gains)... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in excess
of realized gains)........ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions....... (0.40) (0.42) (0.26) (0.34) (0.17) (0.41) (0.42) (0.26) (0.36) (0.18)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of
period...................... $ 10.37 $ 9.64 $ 10.48 $ 10.37 $ 9.64 $ 10.37 $ 9.64 $ 10.48 $ 10.38 $ 9.65
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total return(6)............. 11.84% (4.10)% 7.31% 11.26% (1.02)% 12.01% (4.05)% 7.25% 11.43% (0.87)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's)................... $24,582 $23,634 $24,235 $ 443 $ 227 $15,782 $16,224 $15,535 $ 284 $186
Ratio of expenses to
average net assets
(annualized)(7)........... 0.77% 0.40% 0.32% 1.30% 1.08% 0.77% 0.43% 0.35% 1.29% 1.09%
Ratio of net investment
income to average net
assets (annualized)....... 3.90% 4.16% 4.25% 3.37% 3.62% 4.06% 4.22% 4.28% 3.54% 3.72%
Portfolio turnover rate
(Note 5).................. 59.28% 31.48% 5.73% 59.28% 31.48% 84.85% 32.26% 0.00% 84.85% 32.26%
</TABLE>
37
<PAGE>
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
-------------------------------------------------------------------------------------------------
U.S. Government Intermediate Fund California Municipal Bond Fund
Class A Class B Class A
----------------------------------------- ------------------- -------------------------------
1995(1) 1994(1) 1993(1) 1992(4) 1995(1) 1994(3) 1995(1) 1994(1) 1993(1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $ 9.32 $ 10.03 $ 9.69 $ 10.00 $ 9.32 $ 9.48 $ 10.31 $ 11.56 $ 10.74
-------- -------- -------- -------- -------- -------- -------- -------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income....... 0.48 0.46 0.51 0.13 0.43 0.19 0.54 0.59 0.59
Net gain or loss on
securities (both realized
and unrealized)............. 0.44 (0.71) 0.41 (0.31) 0.44 (0.16) 0.95 (1.25) 0.83
-------- -------- -------- -------- -------- -------- -------- -------- ---------
Total from investment
operations.................. 0.92 (0.25) 0.92 (0.18) 0.87 0.03 1.49 (0.66) 1.42
-------- -------- -------- -------- -------- -------- -------- -------- ---------
LESS DISTRIBUTIONS:
Dividends (from net
investment income).......... (0.48) (0.46) (0.51) (0.13) (0.43) (0.19) (0.54) (0.59) (0.59)
Distributions (from realized
capital gains).............. 0.00 0.00 (0.07) 0.00 0.00 0.00 0.00 0.00 (0.01)
Distributions (in excess of
realized gains)............. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- -------- ---------
Total distributions......... (0.48) (0.46) (0.58) (0.13) (0.43) (0.19) (0.54) (0.59) (0.60)
-------- -------- -------- -------- -------- -------- -------- -------- ---------
Net asset value, end of
period........................ $ 9.76 $ 9.32 $ 10.03 $ 9.69 $ 9.76 $ 9.32 $ 11.26 $ 10.31 $ 11.56
-------- -------- -------- -------- -------- -------- -------- -------- ---------
-------- -------- -------- -------- -------- -------- -------- -------- ---------
Total return(5)............... 10.12% (2.51)% 9.64% (1.83)% 9.54% 0.36% 14.76% (5.83)% 13.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)....................... $ 8,209 $ 9,699 $ 8,930 $ 3,235 $ 426 $ 321 $184,283 $171,768 $197,394
Ratio of expenses to average
net assets
(annualized)(6)............. 0.69% 0.43% 0.23% 0.00% 1.21% 1.08% 0.93% 0.57% 0.53%
Ratio of net investment
income to average net assets
(annualized)................ 5.03% 4.80% 4.98% 5.50% 4.53% 4.24% 4.98% 5.43% 5.25%
Portfolio turnover rate
(Note 5).................... 82.88% 55.09% 37.80% 0.00% 82.88% 55.09% 25.90% 30.32% 7.44%
</TABLE>
(1) For the year ended December 31.
(2) For the period January 10, 1990 (effective date of registration) to December
31, 1990.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) For the period October 5, 1992 (inception of operations) to December 31,
1992.
(5) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(6) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1995 1994 1993 1992 1991 1990 1995 1994
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Government Intermediate Fund....... 1.32% 1.28% 1.26% 2.09% NA NA 3.25% 3.25%
California Municipal Bond Fund.......... 0.96% 0.97% 0.98% 1.04% 1.14% 1.70% 2.24% 3.25%
National Municipal Bond Fund............ 1.05% 1.06% 1.06% 1.16% 1.33% 2.64% 3.25% 3.25%
</TABLE>
38 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------
California Municipal Bond Fund (continued)
Class A (continued) Class B
------------------------------ -------------------
1992(1) 1991(1) 1990(2) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 10.64 $ 10.12 $ 10.00 $ 10.32 $ 10.74
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............ 0.60 0.66 0.65 0.48 0.25
Net gain or loss on securities
(both realized and unrealized)... 0.21 0.56 0.12 0.94 (0.42)
-------- -------- -------- -------- --------
Total from investment
operations....................... 0.81 1.22 0.77 1.42 (0.17)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.60) (0.66) (0.65) (0.48) (0.25)
Distributions (from realized
capital gains)................... (0.11) (0.04) 0.00 0.00 0.00
Distributions (in excess of
realized gains).................. 0.00 0.00 0.00 0.00 0.00
-------- -------- -------- -------- --------
Total distributions.............. (0.71) (0.70) (0.65) (0.48) (0.25)
-------- -------- -------- -------- --------
Net asset value, end of period..... $ 10.74 $ 10.64 $ 10.12 $ 11.26 $ 10.32
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return(5).................... 7.86% 12.53% 9.38% 14.05% (1.59)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)............................ $141,108 $106,592 $ 20,329 $ 3,162 $ 1,416
Ratio of expenses to average net
assets (annualized)(6)........... 0.54% 0.00% 0.00% 1.46% 1.28%
Ratio of net investment income to
average net assets
(annualized)..................... 5.66% 6.43% 7.13% 4.42% 4.91%
Portfolio turnover rate (Note
5)............................... 46.55% 30.61% 64.18% 25.90% 30.32%
<CAPTION>
-------------------------------------------------------------------------------------
National Municipal Bond Fund
Class A Class B
--------------------------------------------------------------- -------------------
1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(2) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 10.41 $ 11.61 $ 10.80 $ 10.61 $ 10.03 $ 10.00 $ 10.41 $ 10.76
-------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............ 0.53 0.58 0.60 0.60 0.68 0.66 0.47 0.24
Net gain or loss on securities
(both realized and unrealized)... 0.98 (1.20) 0.82 0.32 0.60 0.03 0.98 (0.35)
-------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations....................... 1.51 (0.62) 1.42 0.92 1.28 0.69 1.45 (0.11)
-------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.53) (0.58) (0.60) (0.60) (0.68) (0.66) (0.47) (0.24)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.01) (0.13) (0.02) 0.00 0.00 0.00
Distributions (in excess of
realized gains).................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions.............. (0.53) (0.58) (0.61) (0.73) (0.70) (0.66) (0.47) (0.24)
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 11.39 $ 10.41 $ 11.61 $ 10.80 $ 10.61 $ 10.03 $ 11.39 $ 10.41
-------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- --------
Total return(5).................... 14.76% (5.41)% 13.39% 8.97% 13.22% 8.52% 14.16% (0.99)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)............................ $ 53,387 $ 50,037 $ 57,590 $ 39,463 $ 26,432 $ 3,261 $ 1,051 $342
Ratio of expenses to average net
assets (annualized)(6)........... 0.91% 0.57% 0.50% 0.54% 0.00% 0.00% 1.44% 1.28%
Ratio of net investment income to
average net assets
(annualized)..................... 4.79% 5.35% 5.29% 5.61% 6.59% 7.20% 4.22% 4.72%
Portfolio turnover rate (Note
5)............................... 53.43% 37.52% 3.72% 39.20% 14.47% 15.37% 54.30% 37.52%
</TABLE>
39
<PAGE>
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH
PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond Funds
------------------------------------------------------------------------------------
U.S. Government and Mortgage Securities Fund
Class A Class B
--------------------------------------------------------------- ------------------
1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(2) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 9.55 $ 10.60 $ 10.57 $ 10.59 $ 10.02 $ 10.00 $ 9.55 $ 9.80
-------- -------- -------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............ 0.69 0.70 0.74 0.82 0.91 0.92 0.64 0.32
Net gain or loss on securities
(both realized and unrealized)... 0.75 (1.05) 0.03 (0.02) 0.57 0.02 0.75 (0.25)
-------- -------- -------- -------- -------- -------- -------- -------
Total from investment
operations....................... 1.44 (0.35) 0.77 0.80 1.48 0.94 1.39 0.07
-------- -------- -------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Dividends (from net investment
income).......................... (0.69) (0.70) (0.74) (0.82) (0.91) (0.92) (0.64) (0.32)
Distributions (from realized
capital gains)................... 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Distributions (in excess of
realized gains).................. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- -------
Total distributions.............. (0.69) (0.70) (0.74) (0.82) (0.91) (0.92) (0.64) (0.32)
-------- -------- -------- -------- -------- -------- -------- -------
Net asset value, end of period... $ 10.30 $ 9.55 $ 10.60 $ 10.57 $ 10.59 $ 10.02 $ 10.30 $ 9.55
-------- -------- -------- -------- -------- -------- -------- -------
-------- -------- -------- -------- -------- -------- -------- -------
Total return(6).................. 15.50% (3.30)% 7.49% 7.85% 15.53% 10.46% 14.93% 0.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)............................ $255,614 $245,715 $311,089 $209,593 $114,130 $ 7,387 $ 3,799 $1,451
Ratio of expenses is average net
assets (annualized)(7)........... 1.02% 0.80% 0.78% 0.60% 0.00% 0.00% 1.53% 1.43%
Ratio of net investment income to
average net assets
(annualized)..................... 6.90% 7.05% 6.93% 7.74% 8.79% 9.84% 6.34% 6.82%
Portfolio turnover rate (Note
5)............................... 48.39% 16.33% 25.63% 25.50% 4.35% 12.47% 48.39% 16.33%
</TABLE>
(1) For the year ended December 31.
(2) For the period January 10, 1990 (effective date of registration) to December
31, 1990.
(3) For the period July 1, 1994 (inception of operations) to December 31, 1994.
(4) For the period October 1, 1993 (inception of operations) to December 31,
1993.
(5) For the period December 5, 1990 (inception of operations) to December 31,
1990.
(6) Total returns assume purchase at net asset value (without sales charge) at
the beginning of each period. Returns for periods less than a full year are
aggregate (non-annualized) returns.
(7) Effective January 10, 1990, the Distributor and Adviser for the Atlas Funds
agreed to temporarily cap (or waive) their management and 12b-1 fees and to
absorb other operating expenses. Had such action not been taken, the ratio
of expenses to average net assets (annualized) would have been as follows:
<TABLE>
<CAPTION>
Class A Class B
Period Ended 1995 1994 1993 1992 1991 1990 1995 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Government and Mortgage Securities
Fund........................................ 1.04% 1.05% 1.05% 1.12% 1.20% 2.15% 2.27% 3.25%
Balanced Fund................................ 1.53% 1.56% 2.04% NA NA NA 3.25% 3.25%
Growth and Income Fund....................... 1.24% 1.28% 1.36% 1.45% 1.66% 3.41% 2.39% 3.25%
Strategic Growth Fund........................ 1.65% 1.74% 2.23% NA NA NA 3.25% 3.25%
</TABLE>
40 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
- ---------------------------------------------------------------------
<TABLE>
<CAPTION>
Stock Funds
-------------------------------------------------------------------------------------------------------
Balanced Fund Growth and Income Fund
Class A Class B Class A
-------------------------- ---------------- ---------------------------------------------------------
1995(1) 1994(1) 1993(4) 1995(1) 1994(3) 1995(1) 1994(1) 1993(1) 1992(1) 1991(1) 1990(5)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 9.23 $ 9.85 $10.00 $ 9.22 $ 9.41 $ 13.52 $ 14.01 $ 13.45 $ 13.52 $ 10.04 $10.00
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income................. 0.42 0.44 0.09 0.35 0.10 0.20 0.16 0.22 0.25 0.31 0.04
Net gain or loss on
securities
(both realized and
unrealized)............ 2.02 (0.62) (0.15) 2.03 (0.07) 4.26 (0.34) 1.17 (0.07) 3.48 0.04
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
Total from investment
operations............. 2.44 (0.18) (0.06) 2.38 0.03 4.46 (0.18) 1.39 0.18 3.79 0.08
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Dividends (from net
investment income)..... (0.42) (0.44) (0.09) (0.37) (0.22) (0.20) (0.16) (0.22) (0.25) (0.31) (0.04)
Distributions (from
realized capital
gains)................. (0.06) 0.00 0.00 (0.06) 0.00 (1.87) (0.12) (0.59) 0.00 0.00 0.00
Distributions (in
excess of realized
gains)................. 0.00 0.00 0.00 0.00 0.00 0.00 (0.03) (0.02) 0.00 0.00 0.00
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
Total distributions.... (0.48) (0.44) (0.09) (0.43) (0.22) (2.07) (0.31) (0.83) (0.25) (0.31) (0.04)
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
Net asset value, end of
period................. $ 11.19 $ 9.23 $ 9.85 $11.17 $ 9.22 $ 15.91 $ 13.52 $ 14.01 $ 13.45 $ 13.52 $10.04
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
-------- ------- ------- ------- ------- -------- -------- -------- -------- -------- -------
Total return(6)........ 26.76% (1.87)% (0.62)% 26.08% 0.25% 33.06% (1.24)% 10.40% 1.40% 38.15% 0.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000)........... $13,547 $9,654 $5,638 $1,632 $ 586 $93,061 $69,590 $59,392 $38,200 $20,084 $1,082
Ratio of expenses is
average net assets
(annualized)(7)........ 1.48% 0.80% 0.00% 1.99% 1.48% 1.24% 1.04% 1.06% 0.87% 0.00% 0.00%
Ratio of net investment
income to average net
assets (annualized).... 4.15% 4.85% 5.02% 3.66% 4.43% 1.26% 1.21% 1.59% 2.00% 3.44% 5.20%
Portfolio turnover rate
(Note 5)............... 25.84% 29.19% 0.00% 25.84% 29.19% 125.28% 123.64% 178.91% 116.14% 146.31% 14.59%
<CAPTION>
--------------------------------------------------------------
Strategic Growth Fund
Class B Class A Class B
---------------- -------------------------- ----------------
1995(1) 1994(3) 1995(1) 1994(1) 1993(4) 1995(1) 1994(3)
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $13.52 $13.04 $ 10.00 $10.14 $10.00 $ 9.98 $ 9.92
------- ------- -------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income................. 0.10 0.02 0.10 0.11 0.05 0.03 (0.05)
Net gain or loss on
securities
(both realized and
unrealized)............ 4.26 0.67 2.82 (0.14) 0.14 2.82 0.21
------- ------- -------- ------- ------- ------- -------
Total from investment
operations............. 4.36 0.69 2.92 (0.03) 0.19 2.85 0.16
------- ------- -------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends (from net
investment income)..... (0.12) (0.06) (0.09) (0.11) (0.05) (0.06) (0.10)
Distributions (from
realized capital
gains)................. (1.87) (0.12) (0.14) 0.00 0.00 (0.14) 0.00
Distributions (in
excess of realized
gains)................. 0.00 (0.03) 0.00 0.00 0.00 0.00 0.00
------- ------- -------- ------- ------- ------- -------
Total distributions.... (1.99) (0.21) (0.23) (0.11) (0.05) (0.20) (0.10)
------- ------- -------- ------- ------- ------- -------
Net asset value, end of
period................. $15.89 $13.52 $ 12.69 $10.00 $10.14 $12.63 $ 9.98
------- ------- -------- ------- ------- ------- -------
------- ------- -------- ------- ------- ------- -------
Total return(6)........ 32.32% 5.32% 29.14% (0.28)% 1.94% 28.58% 1.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (000)........... $4,292 $1,460 $12,223 $6,471 $4,168 $2,332 $ 327
Ratio of expenses is
average net assets
(annualized)(7)........ 1.75% 1.66% 1.62% 1.17% 0.00% 2.14% 1.80%
Ratio of net investment
income to average net
assets (annualized).... 0.84% 0.71% 1.03% 1.25% 2.66% 0.56% 0.82%
Portfolio turnover rate
(Note 5)............... 125.28% 123.64% 73.32% 54.01% 6.41% 73.32% 54.01%
</TABLE>
41
<PAGE>
Notes to Financial Statements DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Atlas Assets, Inc., a Maryland corporation (the "Company"), is an open-end
management investment company registered under the Investment Company Act of
1940 ("1940 Act"), as amended, and offering twelve portfolios. The Company
currently consists of the Atlas U.S. Treasury Money Fund, the Atlas California
Municipal Money Fund, the Atlas National Municipal Money Fund, the Atlas
California Insured Intermediate Municipal Fund, the Atlas National Insured
Intermediate Municipal Fund, the Atlas U.S. Government Intermediate Fund
(shareholder approved name change effective November 20, 1995; formerly the
Atlas U.S. Treasury Intermediate Fund), the Atlas California Municipal Bond
Fund, the Atlas National Municipal Bond Fund, the Atlas U.S. Government and
Mortgage Securities Fund, the Atlas Balanced Fund, the Atlas Growth and Income
Fund, and the Atlas Strategic Growth Fund (a "Fund", or collectively, the
"Funds"). All Funds are diversified with the exception of the Atlas California
Municipal Money Fund, the Atlas California Insured Intermediate Municipal Fund,
and the Atlas California Municipal Bond Fund, which are non-diversified. The
Funds offer two classes of shares, Class A and Class B, with the exception of
Atlas California Municipal Money Fund and Atlas National Municipal Money Fund
which offer only Class A shares. Class A shares are subject to a sales charge at
the time of purchase while Class B shares may be subject to a contingent
deferred sales charge. Both share classes have equal rights and privileges but
have separate distribution plans, class specific expenses and exclusive rights
to vote on matters affecting only individual classes. Class B shares will
automatically convert to Class A shares sixty months after purchase.
The investment objective of the Money and Bond Funds is to seek a high level
of current income consistent with prudent investment management. The Money Funds
seek short-term yields with liquidity and stability of principal. The Bond Funds
seek higher long-term yields for investors who can accept price fluctuations. In
pursuing this objective, the Intermediate Funds can generally be expected to
provide higher yields than the Money Funds with less price fluctuations than
long-term bond funds, and the Insured Funds seek to minimize credit risk. The
Stock Funds seek a varying mix of long-term capital growth and current income
for investors who can accept price fluctuations.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. SECURITY VALUATIONS: Bond Fund securities are valued by pricing services.
Valuations of portfolio securities furnished by the pricing services are
based upon a computerized matrix system and/or appraisals, in each case,
in reliance upon information concerning market transactions and
quotations from recognized securities dealers. Securities for which
quotations are readily available are valued based upon those quotations.
Securities for which quotations are not readily available (which
constitute the majority of the Funds' securities) are valued at their
fair value based upon the information supplied by the pricing services.
The methods used by the pricing services and the quality of valuations so
established are reviewed by the Company's officers under the general
supervision of the Directors of the Company. There are a number of
pricing services available and the Directors, on the basis of ongoing
evaluation of these services, may use other pricing services or
discontinue the use of any pricing service in whole or in part.
Money Fund securities have a remaining maturity of 13 months or less and
their entire portfolios have a weighted average maturity of 90 days or
less. As such, all of the Money Fund securities are valued at amortized
cost, which approximates value. If a Money Fund portfolio had a remaining
weighted average maturity of greater than 90 days, the portfolios would
be stated at value based on recorded closing sales on a national
securities exchange or, in the absence of a recorded sale, at the mean
between the bid and asked prices.
Stock Fund securities listed or traded on an exchange are valued at the
last sales price on the exchange, or lacking any sales on a particular
day, the security is valued at the mean between the closing bid and asked
prices on that day. Each security traded in the over-the-counter market
(but not including securities reported on the NASDAQ National Market
System) is valued at the mean between the last bid and asked prices. Each
security reported on the NASDAQ National Market System is valued at the
last sales price on the valuation date.
b. MUNICIPAL BONDS OR NOTES WITH "PUTS": The Funds have purchased municipal
bonds or notes with the right to resell the bonds or notes to the seller
at an agreed upon price or yield on a specified date or within a
specified
42
<PAGE>
- ---------------------------------------------------------------------
period (which will be prior to the maturity date of the bonds or notes).
Such a right to resell is commonly known as a "put". In determining the
weighted average maturity of the Money Funds' portfolios, municipal bonds
and notes as to which the Funds hold a put will be deemed to mature on
the last day on which the put may be exercisable.
c. VARIABLE RATE DEMAND NOTES: The Funds have invested in certain variable
interest rate demand notes with maturities greater than 90 days but which
are redeemable at specified intervals upon demand. The maturity of these
instruments for purposes of calculating the portfolio's weighted average
maturity is considered to be the greater of the period until the interest
rate is adjusted or until the principal can be recovered by demand.
d. FEDERAL INCOME TAXES: It is the Company's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its net investment income,
including any net realized gain on investments, to its shareholders.
Accordingly, no provision for federal income or excise tax is required.
e. SECURITY TRANSACTIONS: As is common in the industry, security
transactions are accounted for on the date the securities are purchased
or sold (trade date). Realized gains and losses on security transactions
are determined on the basis of specific identification for both financial
statement and federal income tax purposes.
f. ALLOCATION OF EXPENSES, INCOME AND GAINS AND LOSSES: Common expenses
incurred by the Company are allocated among the Funds based on the ratio
of net assets of each Fund to the combined net assets. Common expenses,
income and gains and losses are allocated daily among share classes of
each Fund based on the relative proportion of net assets represented by
each class. Other expenses are charged to each Fund as incurred on a
specific identification basis and then allocated amongst the share
classes or charged to the share class to which the expense is directly
attributable.
g. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS: Interest income and
estimated expenses are accrued daily. Dividends are recorded on the
ex-dividend date. The Money Funds declare and reinvest dividends daily
and pay them monthly. The Bond Funds declare dividends daily and reinvest
and pay them monthly. The Stock Funds, with the exception of the Atlas
Strategic Growth Fund which is on an annual schedule, declare, pay and
reinvest dividends quarterly. Income for the Atlas Growth and Income
Fund, the Atlas Balanced Fund and the Atlas Strategic Income Fund for the
year ended December 31, 1995 are net of foreign withholding taxes of
$9,602, $876 and $1,415, respectively. Distributions of capital gains, if
any, will normally be declared and paid once a year.
h. TO-BE-ANNOUNCED SECURITIES: The Atlas U.S. Government and Mortgage
Securities Fund and the Atlas U.S. Government Intermediate Fund may trade
portfolio securities on a "to-be-announced" (TBA) basis. In a TBA
transaction, the Fund has committed to purchasing or selling securities
for which all specific information is not yet known at the time of the
trade, particularly the pool number and face amount. Securities purchased
on a TBA basis are not settled until they are delivered to the Fund,
normally 15 to 45 days later. These transactions are subject to market
fluctuations and their current value is determined in the same manner as
for other portfolio securities. Pursuant to regulation, the Fund sets
aside sufficient investment securities as collateral to meet these
commitments. Neither of these Funds had TBA commitments as of December
31, 1995.
i. OPTIONS: Premiums received from call options written are recorded as a
liability. The amount of the liability is subsequently adjusted to
reflect the current market value of the option written. If the option is
not exercised, premiums received are realized as a gain at expiration
date. If the position is closed prior to expiration, a gain or loss is
realized based on premiums received less the cost of the closing
transaction. When an option is exercised, premiums received are added to
the proceeds from the sale of the underlying securities and a gain or
loss is realized accordingly. These same principles apply to the sale of
put options.
j. REPURCHASE AGREEMENTS: The Funds may invest in repurchase agreements
secured by U.S. Government obligations or by other securities. Securities
pledged as collateral for repurchase agreements are held by the Funds'
custodian bank until maturity of the repurchase agreements. Provisions of
the agreements ensure that the
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreements, realization and/or retention of the collateral may be subject
to legal proceedings.
k. DOLLAR REVERSE REPURCHASE TRANSACTIONS: The Atlas U.S. Government and
Mortgage Securities Fund and the Atlas U.S. Government Intermediate Fund
may engage in dollar reverse repurchase agreements ("dollar rolls"),
which entail the simultaneous sale of securities with an agreement to buy
back substantially similar securities at a future date at a price less
than the price at which the securities were originally sold. These
transactions are accounted for as financing transactions as opposed to
sales and purchases. The differential in price between the sale price and
repurchase price is recorded as deferred income and recognized between
the settlement dates of the sale and repurchase. Pursuant to regulation,
the Funds set aside sufficient investment securities as collateral to
meet these commitments.
l. FOREIGN CURRENCY TRANSLATION: Amounts denominated in or expected to
settle in foreign currencies (FC) are translated into United States
dollars at rates reported by selected pricing services on the following
basis: Market value of investment, other assets and liabilities--at the
closing rate of exchange at the balance sheet date; purchases and sales
of investment securities, income and expenses--at the rate of exchange
prevailing on the respective dates such transactions are recorded.
The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain
or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of FC's, currency gains or
losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest
and foreign withholding taxes recorded on the Funds' books, and the U.S.
dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at
fiscal year end, resulting from changes in the exchange rates.
m. The Funds have previously adopted Statement of Position 93-2,
"Determination, Disclosure, and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Companies." In accordance with the statement, distributions in excess of
realized gains have been reflected in the Statement of Changes in Net
Assets as follows: Atlas Growth and Income Fund--$42,176 in 1994 resulting
from the non-deductibility under Internal Revenue Service regulations of
certain wash sales and $100,576 in 1994 resulting from a difference in the
required distribution amount determined under excise tax rules versus that
determined under generally accepted accounting principles; and Atlas
Strategic Growth Fund--$1,992 in 1995 resulting from the non-deductibility
under Internal Revenue Service regulations of certain wash sales.
n. USE OF ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
2. UNAMORTIZED ORGANIZATION COSTS
Organization costs of $35,906 incurred by the Company in the organization of
the Class B Plan have been allocated equally to Funds offering Class B shares.
These costs have been deferred and are being amortized on a straight line basis
over a period of five years from July 1994.
44
<PAGE>
- ---------------------------------------------------------------------
3. UNREALIZED APPRECIATION/DEPRECIATION--TAX BASIS
As of December 31, 1995, each Fund had the following unrealized appreciation
(depreciation) for federal income tax purposes (in 000's):
<TABLE>
<CAPTION>
California National U.S.
U.S. California National Insured Insured Government
Treasury Municipal Municipal Intermediate Intermediate Intermediate
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund Fund
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unrealized appreciation................. $ 0 $ 0 $ 0 $ 736 $ 540 $ 54
Unrealized depreciation................. $ 0 $ 0 $ 0 $ (1) $ 0 $ (2)
--------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation).......................... $ 0 $ 0 $ 0 $ 735 $ 540 $ 52
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Cost of securities for federal income
tax purposes............................ $ 51,323 $39,122 $ 8,136 $23,910 $15,178 $ 8,494
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
<CAPTION>
U.S.
Government
California National and Mortgage Strategic
Municipal Municipal Securities Balanced Growth and Growth
Bond Fund Bond Fund Fund Fund Income Fund Fund
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Unrealized appreciation................. $ 13,670 $ 3,958 $ 6,434 $ 1,664 $14,445 $ 2,151
Unrealized depreciation................. $ (30) $ (18) $ (174) $ (155) $ (902) $ (195)
--------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation).......................... $ 13,640 $ 3,940 $ 6,260 $ 1,509 $13,543 $ 1,956
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Cost of securities for federal income
tax purposes............................ $171,006 $53,038 $263,549 $13,540 $84,024 $12,577
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
4. SHARE TRANSACTIONS
The following is a summary of share transactions for the periods ended
December 31, 1995 and December 31, 1994 (in 000's):
<TABLE>
<CAPTION>
California National
U.S. Treasury Municipal Municipal
Money Fund Money Fund Money Fund
Class A Class B Class A Class A
----------------------------------------------------------------------
1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................................... 62,421 47,867 113 58 21,048 32,186 5,490 11,299
Issued in reinvestment of dividends..... 1,732 711 2 0 1,207 1,041 264 245
Redeemed................................ (46,219) (29,296) (30) (30) (25,795) (36,031) (8,004) (10,858)
----------------------------------------------------------------------
Net increase (decrease)................. 17,934 19,282 85 28 (3,540) (2,804) (2,250) 686
----------------------------------------------------------------------
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
California Insured National Insured
Intermediate Municipal Intermediate Municipal U.S. Government
Fund Fund Intermediate Fund
Class A Class B Class A Class B Class A Class B
----------------------------------------------------------------------
1995 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................................... 132 754 18 24 50 461 9 22 78 492 16 35
Issued in reinvestment of dividends..... 62 76 1 0 38 47 0 0 29 34 2 0
Redeemed................................ (275) (691) 0 0 (249) (308) (1) (3) (307) (376) (9) (1)
----------------------------------------------------------------------
Net increase (decrease)................. (81) 139 19 24 (161) 200 8 19 (200) 150 9 34
----------------------------------------------------------------------
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
California Municipal National Municipal U.S. Government and Mortgage
Bond Fund Bond Fund Securities Fund
Class A Class B Class A Class B Class A Class B
----------------------------------------------------------------------------------------------------------
1995 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold.................. 1,171 2,509 148 140 312 751 61 34 1,783 3,991 219 158
Issued in reinvestment
of dividends.......... 584 689 7 2 177 212 2 0 1,065 1,308 10 2
Redeemed.............. (2,038) (3,612) (11) (5) (609) (1,116) (4) (1) (3,767) (8,907) (12) (8)
----------------------------------------------------------------------------------------------------------
Net increase
(decrease)............ (283) (414) 144 137 (120) (153) 59 33 (919) (3,608) 217 152
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Growth and
Balanced Fund Income Fund Strategic Growth Fund
Class A Class B Class A Class B Class A Class B
----------------------------------------------------------------------------------------------
1995 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sold............................ 298 625 90 63 1,424 1,758 143 109 368 291 152 34
Issued in reinvestment of
dividends....................... 37 31 4 1 662 114 29 1 13 5 3 0
Redeemed........................ (171) (182) (12) 0 (1,382) (966) (10) (2) (65) (60) (3) (1)
----------------------------------------------------------------------------------------------
Net increase (decrease)......... 164 474 82 64 704 906 162 108 316 236 152 33
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
</TABLE>
46
<PAGE>
- ---------------------------------------------------------------------
5. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding short-term securities)
for the year ended December 31, 1995 were as follows (in 000's):
<TABLE>
<CAPTION>
California National California Insured National Insured
U.S. Treasury Municipal Municipal Intermediate Intermediate U.S. Government
Money Fund Money Fund Money Fund Municipal Fund Municipal Fund Intermediate Fund
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Purchases................ $0 $0 $0 $14,455 $ 12,403 $7,638
Sales.................... $0 $0 $0 $14,150 $ 14,522 $9,564
-----------------------------------------------------------------------------------------------------
<CAPTION>
California National U.S. Government
Municipal Municipal and Mortgage Balanced Growth and Strategic
Bond Fund Bond Fund Securities Fund Fund Income Fund Growth Fund
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Purchases................ $46,836 $30,768 $120,751 $5,723 $ 91,915 $8,844
Sales.................... $45,903 $27,483 $131,157 $2,817 $103,026 $5,437
-----------------------------------------------------------------------------------------------------
</TABLE>
At December 31, 1995 the following Funds had capital loss carryovers
approximating these amounts for federal income tax purposes (in 000's):
<TABLE>
<CAPTION>
Expiring December
31,
--------------------
2001 2002 2003
<S> <C> <C> <C>
California Insured Intermediate Municipal Fund................. $ -- $ 277 $ 319
National Insured Intermediate Municipal Fund................... -- $ 204 $ 203
U.S. Government Intermediate Fund.............................. -- $ 211 $ 56
California Municipal Bond Fund................................. -- $ 817 $1,074
National Municipal Bond Fund................................... -- $ 265 $ --
U.S. Government and Mortgage Securities Fund................... $288 $5,139 $7,507
Balanced Fund.................................................. -- -- $ 3
</TABLE>
Such amounts may be used to offset capital gains realized during the
subsequent periods indicated and thereby relieve these funds and their
shareholders of federal tax liability with respect to the capital gains that are
so offset. It is the intention of the Funds not to make distributions from
capital gains while they have a capital loss carryover.
6. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Atlas Advisers, Inc. (the "Adviser") provides portfolio management services to
the U.S. Government and Mortgage Securities Fund, the U.S. Government
Intermediate Fund and the U.S. Treasury Money Fund and supervises the provision
of similar services to the Atlas Municipal Funds by The Boston Company Advisors,
Inc. and to the Atlas Stock Funds by Oppenheimer Management Corporation
(together, the "Subadvisers"). Each Fund pays the Adviser a management fee for
the investment management services who, in turn, pays the Subadvisers. The
management fee is based on an annual rate, equal to a percentage of each Fund's
average daily net assets, and is paid monthly as follows: .50% of assets up to
$500 million and .475% of assets over $500 million for the Money Funds; .55% of
assets up to $500 million and .50% of assets over $500 million for the Bond
Funds; and .70% of assets up to $100 million, .60% of assets of the next $400
million and .50% of assets over $500 million for the Stock Funds.
Atlas Securities, Inc. (the "Distributor") acts as principal underwriter for
all classes of shares of each Fund pursuant to a Principal Underwriting
Agreement which provides for a commission to be paid on the sale of Class A
shares of the Bond and Stock Funds and on the redemption of Class B shares held
less than five years of the Stock and Bond Funds and the U.S. Treasury Money
Fund. The Distributor also receives payments under separate Distribution Plans
(the "Class A Plan" and "Class B Plan") pursuant to Rule 12b-1 of the 1940 Act.
Under the Class A Plan, the Company may reimburse the Distributor up to a
maximum of .25% per year of average daily Class A net assets in each Fund,
payable on a quarterly basis. Under the Class B Plan, the maximum rate is .75%
per year of average daily Class B net assets in each Fund and is payable on a
monthly basis.
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
Due to voluntary expense waivers in effect during the year ended December 31,
1995, 12b-1 fees relating to Class A shares were assessed and paid to the
Distributor at rates, varying by Fund, ranging from 0.00% to .25% per annum.
Such fees under the Class B Plan were assessed and paid at rates, varying by
Fund, ranging from .52% to .75% per annum. Class A and Class B 12b-1 fees due
the Distributor were reduced in the amount of $589,716 and $4,374, respectively.
Management fees due the Adviser were reduced by $207,593. The Adviser also
absorbed $156,499 of other Fund expenses during the period. During the year
ended December 31, 1995, the Distributor received $475,239 for sales charges
paid by purchasers of Class A shares and $11,527 for contingent deferred sales
charges paid by sellers of Class B shares. Such sales charges are not an expense
of the Funds and thus are not reflected in the accompanying Statements of
Operations.
The Adviser and Distributor are wholly owned subsidiaries of Golden West
Financial. Certain officers and directors of the Company are also officers
and/or directors of the Adviser and the Distributor.
At December 31, 1995, Golden West Financial owned 24,472 Class A shares in the
California Municipal Money Fund; 24,708 Class A shares in the National Municipal
Money Fund; 2,500 Class B shares in the U.S. Treasury Money Fund; 110,686 Class
A shares and 264 Class B shares in the U.S. Government Intermediate Fund; 2,858
Class A shares and 233 Class B shares in the California Municipal Bond Fund;
2,859 Class A shares and 233 Class B shares in the National Municipal Bond Fund;
3,195 Class A shares and 256 Class B shares in the U.S. Government and Mortgage
Securities Fund; 302,635 Class A shares and 253 Class B shares in the California
Insured Intermediate Municipal Fund; 258,537 Class A shares and 252 Class B
shares in the National Insured Intermediate Municipal Fund; 201,777 Class A
shares and 265 Class B shares in the Balanced Fund; 191 Class B shares of Growth
and Income Fund; and 201,061 Class A shares and 251 Class B shares in the
Strategic Growth Fund.
7. CONCENTRATIONS OF CREDIT RISK
There are certain concentrations of credit risk, which may subject the Funds
more significantly to economic changes occurring in certain industries or
sectors as follows:
The California Municipal Money Fund, the California Insured Intermediate
Municipal Fund, and the California Municipal Bond Fund have concentrations in
California municipal securities.
The U.S. Government and Mortgage Securities Fund has a concentration in
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association
securities.
The U.S. Government Intermediate Fund has a concentration in United States
Treasury obligations and Federal National Mortgage Association securities.
The U.S. Treasury Money Fund has a concentration in United States Treasury
obligations.
Industry and sector concentrations greater than 10% of a Fund's net assets at
December 31, 1995 are
as follows:
The California Municipal Money Fund has 19.22% in housing and 15.13% in
prerefunded bonds.
The National Municipal Money Fund has 16.89% in prerefunded bonds, 16.77% in
general obligation and 13.87% in industrial development bonds.
The California Insured Intermediate Municipal Fund has 26.81% in
transportation, 22.68% in water/sewer, 15.20% in education and 15.18% in public
power.
The National Insured Intermediate Municipal Fund has 52.04% in general
obligation bonds.
The California Municipal Bond Fund has 27.10% in water/sewer, 17.42% in
prerefunded bonds and 14.03% in public power.
The National Municipal Bond Fund has 33.30% in general obligation, 17.17% in
public power, 16.47% in prerefunded bonds and 15.96% in education.
48
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8. FINANCIAL INSTRUMENTS
Certain Funds may trade in financial instruments with off-balance sheet risk
during the normal course of investing activities to assist in managing exposure
to various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Funds at December 31, 1995.
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Independent Auditors' Report
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The Board of Directors and Shareholders
Atlas Assets, Inc.:
We have audited the accompanying statements of assets and liabilities of the
Funds comprising Atlas Assets, Inc. (Atlas U.S. Treasury Money Fund, Atlas
California Municipal Money Fund, Atlas National Municipal Money Fund, Atlas
California Insured Intermediate Municipal Fund, Atlas National Insured
Intermediate Municipal Fund, Atlas U.S. Government Intermediate Fund, Atlas
California Municipal Bond Fund, Atlas National Municipal Bond Fund, Atlas U.S.
Government and Mortgage Securities Fund, Atlas Balanced Fund, Atlas Growth and
Income Fund, and Atlas Strategic Growth Fund) (the "Funds"), including the
statements of investments in securities and net assets as of December 31, 1995,
the related statements of operations for the year ended December 31, 1995, the
statements of changes in net assets for the periods ended December 31, 1995 and
1994, and the financial highlights for each of the periods ended December 31,
1995, 1994, 1993, 1992, 1991, and 1990. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1995 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
respective Funds comprising Atlas Assets, Inc. at December 31, 1995, the results
of their operations, the changes in their net assets, and their financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.
[sig]
Los Angeles, California
February 2, 1996
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BULK RATE
U.S. POSTAGE PAID
SANTA ANA, CA
PERMIT NO. 212
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